Let me set the scene for you. We walked you through the questions you should ask your broker during your first meeting in our last blog post. So now you’ve met your broker, you’ve asked the questions, your home loan journey is now well under way and you’re feeling in-the-know. In fact, you’re basically feeling like an expert who could take on the world at this point (this is how our brokers at The Newstead Group will make you feel). Now, you are ready to take on the next step in your first home purchase or investment journey. But wait – there are a few key areas that you need to have in-check before making an offer on a property.
Have you done your research?
We hope you have, but we're just here to remind you of how important this is. The motto is to choose with your head and not your heart. There are so many variables that need to be considered before making an offer on a property. After your initial conversation with your broker, you should have determined your priorities and goals as well as your borrowing potential when it comes to a home loan. This should put you in the right headspace to be objective in choosing and weighing up the benefits and drawbacks of a potential property. I’m talking size, cost, location, supply, demand and other market conditions. Do you want a house, a unit or land? Have you considered the appeal of the property for potential renters in the short term, and buyers in the long term for when you want to sell? Research is absolutely vital in succeeding on your home loan journey.
Have you obtained a pre-approval?
To save everyone’s time and energy, it is not advisable to make an offer on a property until your mortgage broker has helped you obtained a pre-approval from a lender. A pre-approval will allow you to estimate how much you can borrow from a lender, including what your maximum borrowing amount would be. Once you have a pre-approval, you can navigate the property market realistically and with a higher confidence that your offer could land.
Have you sought out an independent valuation of the property?
You’ve done the hard yards – you have diligently researched the property and its surrounds, you’ve got a pre-approval locked and loaded, and now it’s time to go one step further before making an offer on the property. You need to conduct an independent valuation of the property. This will ensure that you are not paying above market value for the property and ensure you have been receiving accurate financial advice. You deserve to understand the ins and outs of your potential future property, and an independent valuation will allow you to cover all bases.