Ramsey Tips – PRE-APPROVALS

News
June 15, 2020

Are you hunting for your first home, next home or perhaps an investment property? Feel more secure knowing how much you can spend. Here is a pre-approvals checklist to make searching for your next property a whole lot easier:

1. Commit yourself!

A property is a long-term commitment for it to be worthwhile, so the very first step is to evaluate your budget, constraints, and future obligations.

2. Get your finances in order and stop spending money unnecessarily

It’s time to get serious and clean up your finances; this includes completing a detailed review of all your income and monthly expenditure. Yes, that includes Uber Eats, Deliveroo, Credit Cards and Afterpay accounts!

Using a Money Management Tool like Ramsey Property Wealth Desk will help you get a detailed understanding of your finances and where you can reduce your monthly living expenditure.

3. Seek professional advice

The next step is to seek professional advice. It’s your opportunity to ask as many questions as needed to alleviate any uncertainty you may have. Whether you are chasing a great rental return, maximum capital growth or tax effectiveness, speaking to one of our Property Advisors will help you make the correct property investment choice.

4. Get your paperwork in order

As well as proof of your current income, employment, debts and loans, gather any paperwork that helps support your character/circumstance in the application. If you have been a long-term tenant, get a 12-month tenancy legibility that proves your ability to make regular repayments, for example.

Before applying for a loan, minimise your current debt load, and if possible, reduce the limit on any credit cards you have, as this is perceived by lenders as potential for debt.

5. Get a pre-approved (credit assessed) loan

It is advisable to have a fully assessed pre-approval before you start your search, as this will allow you to make an offer once you have found a property you like. It allows you to be competitive and ensure that you have what you need to agree to the property. It is vital that your approval has actually been credit assessed and is not just an automated pre-approval from some high-tech bank. This will ultimately lead to disappointment when it comes time to actually settle the purchase.

Our customers continue to secure great deals nationally, while in the effects of the recent pandemic. Securing a property now could potentially see you in a stronger position in the future. We want you to go house shopping in confidence with a pre- approved loan, placing yourself in pole position to purchase your first/next home.

The team at Ramsey Property Wealth will get to know your current situation, know which banks to work with to make your home loan strain a little easier. Talk to us today on 1300 001 215.

Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.