No hope of getting finances pre-approved
EXPERTS are saying now is the time is to get your finances in order for spring real estate season as banks tighten their lending requirements in the wake of the Royal Commission.
The increased scrutiny has seen approval times for loans take as long as a month, instead of as little as a week, last year.
Lenders are collecting more information on borrowers’ actual living expenses, rather than using a uniform standard for assessing serviceability. These tightened policies mean that accessing a loan is more complex. For this reason, lenders are more thoroughly analyzing loan applications, which has resulted in an increase in the time it takes for a loan to be approved.
Lenders will want to see that buyers have established a healthy savings habit and ideally have saved a 20 per cent deposit for their home loan. Buyers should also account for the upfront costs associated with buying a home, which are not included in the deposit, such as: stamp duty, solicitor’s fees, strata levies (if buying a unit), building and so forth.
There have been times where buyers view the property too close to auction and have no hope of getting finances pre-approved.
For further information on purchasing your first home, contact us today on 0433 590 621 for free no obligation chat.
*This is general information and does not take into account your own personal financial circumstances, objectives or needs. You should consider this information in light of your own personal circumstances before making any investment decisions.