Loan Market

Eight steps to a stress-free property purchase. 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. We’re ready to talk 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. Get the green light Whether you’re bidding at auction or placing an offer with an agent, you’re in a stronger position if you’ve got 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 howmuch 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. Kick off the search Looking for a house is always more time consuming than you expect, so do schedule plenty of weekend time to attend ‘open for inspections’. Once you’ve found a place you like, make sure you ask your broker about organising a valuation and if necessary, a building and pest inspection. 1 2 3 4