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Choosing a Property or Loan…what comes first?


It’s easy to get carried away with the fun part of buying a property – looking at houses – but delaying the less compelling task of arranging finance will weaken your negotiating position on both the property and the loan.

Looking for a property to purchase is an exciting time. Choices regarding location, size, number of rooms and local amenities often see house hunters carried away in a deluge of daydreams and anticipation.

But, before you get carried away, it’s important to check off the essentials first. Although organising your finances may seem drab in comparison to perusing sales listings, gaining pre-approval with a lender will give you confidence about how much you can afford to borrow.

Firstly, you need to determine if you’re eligible to borrow money from a lender and your ability to repay the loan will need to be assessed – you don’t what to find out after you’ve made an offer on a home that your credit history or deposit isn’t sufficient.

Arranging finance before finding the perfect property will put you in a good position when it comes time to make an offer. When you do find the house you have always wanted, you can present to the seller and estate agent as a prepared applicant who is serious and reliable.

Sellers are most interested in completing their sale quickly and showing that you are capable of this will help put you at the top of a potentially competitive list of applicants.

In the instance that you find and secure purchase of a home without having your loan pre-approved by a lender, there are a few pitfalls that you risk running into such as losing your initial deposit to hold the property and any inspection reports required.

Saving home loan applications to the last minute also leaves less time to find the most suitable loan and have it approved ahead of settlement.

Arranging home loan finance as an afterthought also adds pressure to the process of shopping around for the right loan and gathering the paperwork to prove you can afford the loan.

Before you start looking, please call Chardon & Abbott Home Loans or Mick or Geoff directly.

Suite 4,354 – 360 High Street, Penrith, NSW, 2750.

Phone: 4731 5085/Fax: 4731 5385




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