Firstly, find a recommended Broker who knows the area you are buying in well and will independently guide you through the plethora of banking products and lending criteria requirements that are best for your personal situation, not the banks. Ensure they are experienced and have been in the industry for some time. Mortgage broking is easy to do incorrectly and only experience will assist one to do it well. Note: When it comes time to negotiate on a property, sellers are often attracted to buyers who have a finance pre-approved letters over those who dont have them. Check out My Legendary Broker for Chinchilla
Your Loan pre-approval also lets you head into the exciting house hunting process, knowing the maximum amount you have to spend on a property, giving you confidence to buy or negotiate on price. It also saves you from looking at places that arent in your price range and then getting disappointed. Once you have pre-approval, you can confidently begin the hunt for a new home.
Your loan pre approval process will also confirm if you may be eligible for government grants and outline all your costs for buying.
Bank Deposits vary, suburb to suburb, but also bank to bank. This is one of the main reason to speak to a Real Estate specialist at the beginning to guide you to the best options for you and your area. Some lenders require a deposit of 5% of the propertys value. A larger deposit may help you to avoid costly LMI, which is charged when you borrow more than 80% of the propertys value, again, this should be assessed based on your own personal situation and requirements.
If you have an existing property you may also need to get this property appraised before you get approval:
Buyers who own property should have their current property professionally appraised by an area specialist. In some cases, it may better to sell before you buy, however, if you dont need or want to sell before you buy, this will give you an up to date market appraisal of your property and a price guide, should you want to use the property as collateral or access the equity it holds.
Some requirements they may need to provide to your Broker to get your pre approval:
2 Most recent Payslips / letter of employment
Group certificates / BAS / Tax Returns
Current Car / Personal / Home Loan Statements
Credit Card limits and statements
Current rental property statement
Your Loan pre-approval also lets you head into the exciting house hunting process, knowing the maximum amount you have to spend on a property, giving you confidence to buy or negotiate on price. It also saves you from looking at places that arent in your price range and then getting disappointed. Once you have pre-approval, you can confidently begin the hunt for a new home.
Your loan pre approval process will also confirm if you may be eligible for government grants and outline all your costs for buying.
Bank Deposits vary, suburb to suburb, but also bank to bank. This is one of the main reason to speak to a Real Estate specialist at the beginning to guide you to the best options for you and your area. Some lenders require a deposit of 5% of the propertys value. A larger deposit may help you to avoid costly LMI, which is charged when you borrow more than 80% of the propertys value, again, this should be assessed based on your own personal situation and requirements.
If you have an existing property you may also need to get this property appraised before you get approval:
Buyers who own property should have their current property professionally appraised by an area specialist. In some cases, it may better to sell before you buy, however, if you dont need or want to sell before you buy, this will give you an up to date market appraisal of your property and a price guide, should you want to use the property as collateral or access the equity it holds.
Some requirements they may need to provide to your Broker to get your pre approval:
2 Most recent Payslips / letter of employment
Group certificates / BAS / Tax Returns
Current Car / Personal / Home Loan Statements
Credit Card limits and statements
Current rental property statement