5 steps to secure your new home purchase

Finding your dream home or an ideal investment property is difficult at the best of times, but in a competitive and fast-paced market it can be harder. Missing out on buying a property because your finances aren't in order can be heart-breaking. Did you know there is a way for you to increase your chances when purchasing your dream property and being on the path to successful home ownership?

If you are serious about buying property, we have five simple steps you can take now to help bump out rival buyers and secure your new home purchaser faster. Watch the video to learn some simple strategies of things you can do for your finances to prepare for a home loan and make sure you don’t miss out on that home and help you secure the property purchase.

If you are looking for a property to buy, request to be added to our open home alert 

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1. Collate your important documentation and information  

Daily living expenses, income (eg: salary, dividends, rent, profit), assets and liabilities schedule such as cash savings, shares, vehicles etc and credit cards, loans and buy-now-pay-later accounts. 

2. Consider the type of property you are looking to purchase

• What type of property would like to purchase – for example a detached house or a strata titled unit?
• What is the nature of the purchase – will it be for owner occupied or investment?
• What locations would you would consider? Do you have a preferred Illawarra suburb to buy in?
• What features and includes do you desire – for example, number of bedrooms, swimming pool, views, etc.
• Will the property be going to auction? And if so, how to you prepare to buy at auction?

Once you have determined these factors, you will be well positioned to determine the likely market values of similar properties and other financial considerations, for example, potential new rent for an investment purchase, strata fees, council rates.

3. Review your credit report and score

Your credit score is based on financial and personal information in your credit report. Lenders use your credit score to decide whether they will lend you money. Knowing your credit score can help us negotiate a better deal for you. The higher your credit score, the more chances a lender will offer you a home loan

4. Approach a mortgage professional 

With your above information collated, a mortgage broker or bank will be in a position to determine the likelihood of loan approval and be able to consider the best lender and product for your circumstances, as well as know of any APRA changes to home loans.

5. Obtain pre-approval

Having selected a lender and appropriate loan product work with your mortgage broker or bank to obtain a pre-approval. Pre-approval for a home loan is not essential, but it can potentially be the make or break when securing your home loan as it will establish your financial position with your lender and indicates how much they are willing to lend to you.

A pre-approval home loan is not binding and usually has conditions, but it can provide you with confidence before committing to a sale or bidding at auction. The pre-approval may also allow you to move more quickly as the lender has in effect already started considering your loan approval. This could put you ahead of your competitors who may not have started the process of obtaining finance. In an active market, some borrowers can face lengthy time delays with the processing of finance applications by some lenders.

Most pre-approvals are only valid for around 90 days, so you should seek pre-approval when you are serious about buying. Don't try to predict the market - if you are ready to buy, don't delay.

Following the above steps, having a pre-approval in place, and ensuring your deposit or deposit bond is ready is attractive to a motivated vendor and real estate agent and give you the edge over other potential buyers and help you secure your dream home or investment and help you to increase your chances of buying a home. It is important that you also know of all the costs involved with buying a property.

If you are looking for a property to buy, request to be added to our open home alert 

YES, ADD ME TO YOUR OPEN HOME ALERT

 We hope that has helped you today with buying your next property. We encourage you to keep up to date with our current properties for sale and open homes as they are always changing. If you have any questions, we would love to talk to you and can be contacted on 02 4285 7400.