Only once you have a good idea of your current finances, start researching and shopping around to see what loans are available and make some enquiries.
Speaking directly with lenders about your particular situation however is key.
Sharing your plans and your goals will help them to work out the best loan for you.
This is why it’s paramount that you work with a lender that you like, who you can trust and who you believe will have your best interests in mind.
Tip – Try building a good relationship with your lender, whether a broker or a banker, they’re there to help you. Remember, when you’re really close to purchasing, there’s a good chance that you’ll be speaking to them on a more regular basis.
Sometimes things don’t always go to plan so it’s always handy and comforting to know that someone is in your corner and ready to help.
Tip – Lenders may value the property themselves or have it valued through a third party to determine if it’s of adequate security against the amount of the loan. It’s best to also be aware that lenders lend on a percentage of the valuation of a property, not the purchase price paid.
And lastly, before applying for a loan, ask questions;
Ask the lender how much you can borrow and how soon it will be available
Ask the lender if there’s a line of credit / draw down option available should you need it. This should only ever be accessed to create or add value to your property, purchasing an investment property or in extreme emergencies
Ask the lender once you’ve applied for the loan and are pre-approved, how long the pre-approval period lasts for
Ask the lender about any fees involved with the loan. Fees like application, establishment and valuation fees may be involved and applicable when applying for the loan. This varies from lender to lender
Ask the lender if they can run you through the before, during and after process of applying for the loan, being given the loan and then finally settling the loan
Ask the lender if there’s anything else you should be aware of before applying. Things like potential regular servicing and administration fees, missed payment/s handling, early repayment penalties, loan expectancies etc.
Only once you’ve found the lender that you want to work with would you then submit your application for the loan.
On a side note, remember to never exchange any kind of contract for any property unless finance has been officially and formally approved.
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This information is of a general nature only and does not take into account your objectives, financial situation or needs. We are not financial, legal or tax advisers. You should seek appropriate professional advice specific to you before acting on this information.
