Finance First - Getting Yourself Ready to Buy

Healthy and ambitious property goals is a good thing but balance needs to come from what is achievable before you lock in your final decision.

By The Real Estate Establishment

21-02-2019
Here at the Real Estate Establishment, we have the privilege of meeting lots and lots of people within the Camden and Macarthur Districts who are looking to transact real estate.

The advantage we experience in our role within that interaction is an opportunity to witness the full length of this process on plenty of different occasions – the outcome of which is a sound understanding of what works most effectively and which course of action we would recommend to a buyer looking to start their real estate journey today.

Our number one piece of advice – finance first.

It’s our belief that a healthy and ambitious property goals is a good thing but balance needs to come from what is achievable before you lock in your final decision. The safest way to do this is by setting your budget first, after having a conditional approval either via a mortgage broker or directly with a lender.
We can’t and aren’t offering financial advice here, simply providing a suggestion that will make your buying process a little easier.

With the side effects of the recent banking royal commission filtering through all facets of the real estate space, what we are observing more than ever is the amount of buyers who are losing their 0.25% holding deposits due to finance approvals, or lack thereof.

So what is the key list of advantages of having your finance approved to the fullest extent possible?

•Confidence – once your finance is sorted and your choice is made, you can enter the price negotiation with far more conviction and confidence.
•Efficiency – a competitive advantage is also created for yourself between other buyers who may have interest in “your next house” that haven’t ventured as far down the finance path as you.
•Responsibility – by mitigating as much of the finance approval risk as you can, you are minimising your exposure to losing your 0.25% holding deposit once you find and negotiate the price of the perfect home.
•Security – the most important aspect that we see for ensuring your finance is arranged at the beginning of the process is that you are making a logical decision at that point. This means you are less likely to risk entering into a borrowing position that is uncomfortable or potentially risky as a result of entering a conditional contract for the sale of land under emotional circumstances towards the end of the buying process. By locking in your finances whilst you’re still operating in the logical phase of your buying process will make it easier to avoid over committing yourself or your family.

So, if you’re starting your buying journey right now – you may want to consider a conversation with your mortgage broker, accountant or financial advisor about your borrowing options before your domain or realestate.com app becomes too full of dream homes: P

Our team at The Real Estate Establishment is available any time to assist should you ever have questions regarding buying or selling real estate in the Camden and Macarthur region.