Ray White Mountain Creek Buyers Guide 2018 2018 | Page 13

Four steps to securing
your home loan
01
Set your goal
Once you know the type of property you want, and have a rough idea of what it’s likely to cost,
set yourself a target for saving a deposit. Remember, if your deposit is less than 20% you may
need to pay Lenders Mortgage Insurance, or get a guarantor to offer their property as security
– be sure to factor this into your plans.
02
Talk to a broker
Before you start actively looking for a property, it’s worth speaking with a broker. They’ll give you
an accurate assessment of your borrowing capacity (more accurately than an online calculator)
and determine your eligibility for government grants. Your broker will explain all the government
fees and charges and ensure you’ll be eligible for a loan when the time comes to buy.
03
Get the green light
Whether you’re bidding at auction or placing an offer with an agent, you’re in a stronger position
with a pre-approval. Pre-approval is essentially a green light from a lender to spend up to a
certain amount. This means you’ll know how much you’ve got to work with. You’ll usually receive
pre-approval within a few days of application. It’s generally valid for three to six months, and
assumes your financials stay the same.
04
Close the deal
Whether you buy at auction, by private treaty or off-the-plan, securing a property is cause for
celebration. But before you pop the champagne, you’ll need to move fast to organise a few
important things:
A holding deposit – usually $500 to $1,000 or 5-10% for auction purchases
A solicitor/conveyancer – your broker can recommend someone they
trust to take care of the legal work
Notify your broker – so they can quickly move you to formal approval.
Tip
Final credit assessment
During the time when you are closing the deal, the lender will value the
property, process your application and make a final credit assessment. If you
haven’t already, you’ll also need to pay the full deposit at this point.
buyer's guide