The Importance of Keeping Your Finance Current
You’ve got your finance pre-approved – but that’s not a complete certainty the bank will lend you the money. The bank still needs to give you an unconditional offer once you have a specific property you wish to purchase. The last thing you want is finance to become a point of stress or uncertainty when you want to declare a contract unconditional. So what do you need to do to ensure this part of the buying process runs smoothly?
Address Conditions of the pre-approval
Address as many finance conditions as possible before you present the bank with a property. If your finance is subject to proof of income, valuation on your home, etc. then deal with it now. These things can hold up your unconditional offer or even make it fall over completely.
One example is the client who had obtained finance while employed. There was a condition to prove income. At the date we found her a property she was self employed. So suddenly she had to supply her proof of income – but now it was harder to prove her income. She ended up getting the approval, but not without a lot of stress.
Change in Cirmcumstances
If you have a change of circumstances and it is likely to impact your ability to obtain finance then talk about it with your bank or broker straight away. For example, you may have started a business, changed jobs, sold a property….
Offer of Finance Expires
All finance offers will have an expiry date. They usually last for 90 days. So diarise the expiry date and make sure a request for renewal goes in several days prior to the expiry.
When You Have a Contract – Get the Bank Going First
Once you have a conditional contract on a property, and before you embark on your due diligence, get the signed contract to the bank straight away and get the big wheels of finance moving. Banks are bureaucratic and struggle to act quickly. Valuers, building inspectors, and property managers can all pretty much be on site with a couple of days notice – so you’ve got time there.