Being Prepared

4 July 2014

There has been a surge in buyers coming back in to the market with a larger number of real estate transactions. With more competition amongst Buyers there is becoming more pressure for them to strengthen their offers. Stronger offers are not necessarily about a higher purchase price. In fact they can be more about the conditions attached to the offer.

The most prevalent condition on a Sale & Purchase Agreement is having to arrange Finance. Most of us need some sort of loan in order to settle a purchase and the loan is usually going to be secured by the property that we are purchasing. If you are able to tell your Agent and your Vendor that you already have your finance approved then your offer is far stronger than someone who may have a higher Purchase price but has not arranged their finance and therefore may not necessarily be a sure bet to get their finance approved.

Today’s market differs because of the changes in lending criteria. Many people that qualified for loans previously are struggling to get their loan approved today. Getting a pre-approved loan can address any complications in your application. Always better to do this before you go looking in order to give yourself time to iron out any sticky issues that could impair on your ability to borrow funds.

In order to clarify exactly what a buyer’s maximum loan capacity is you need to ascertain what that is from an independent source such as a mortgage broker who is not limited by only one lenders’ criteria as they represent many different lenders. The best time to visit your Mortgage Broker is before you go looking for a property. There’s nothing worse than looking at a house, falling in love with it only to find that you would be unable to afford it or to at least get the loan to purchase the property.

However while pre-approval can sort out what your maximum borrowing ability is, the approval will still be subject to the lender’s consent on the property that you wish to purchase. But this can simply be handled by having the sale & purchase agreement forwarded on to the lender/broker prior to signing it. Having pre-approved finance means that this should be the only area that you have to worry about.

Pre-approved home loans are an essential factor when you are considering purchasing a property. It can empower you so that you are in the strongest possible position to get the best possible chance of securing your new home at the best possible terms.

 

Published In Whakatane Beacon

This post was written by

Trish Marsden - who has written 96 posts

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