“Is it best to wait until I find the property I want to buy before seeking finance so I know how much I need, or should I secure my finance before I start looking?”
The importance of this issue cannot be overstated. In the wake of enquiries and complaints, banks and non-bank lending institutions have significantly tightened mortgage lending, not only by way of approvals, but also borrowing amounts. Information is power, so it’s vital you know where you stand. The last thing you want is to locate and fall in love with your dream property, only to find that your borrowing power falls short of the price point.
So, when you think it might be time to make a new purchase, become a first-time owner-occupier or investor, the smart thing to do is to make an appointment with your lender – or meet with a few lenders – to discuss your potential borrowing power. When you’ve found the lender that best suits your needs and budget, secure written pre-approval, so you’re good to go when find the property of your dreams! First home buyers should take note of the new governments first home buyers scheme!
