Sep 28 - Written By Anna Stanford
It's official, the WA property market is a seller's market; what that means for you is you need to act fast if you are a buyer.
Whether you are in the market to buy your first home, are renting and need to move or have sold your house and on the search for your next home, time is of the essence in today's market. The latest statistics from reiwa.com.au stated that homes are selling at the fastest rate in 15 years, with an average of 17 days. Whilst this is great if you are selling, you need to be prepared to act fast to find your dream home or investment if you are a buyer.
In today's market, it is vital to know what your borrowing capacity is to make a firm offer; having finance pre-approved can also increase your chances of securing the home, as you become a much more attractive buyer to the sellers, who want to accept the right offer and reduce a fall over sale subject to finance.
Some of our top tips to help you;
1. Reach out to a broker early on in the process. Have an honest conversation about what you are looking for, where the market is at in terms of price point and what you need to begin the application process. The beauty of using a broker is we have access to a broad range of lenders, can walk you through the paperwork and help you with the process of submitting the offer.
2. Start saving for your deposit if you haven't already done so. A substantial deposit of usually 20% can open doors to additional lenders; it also reduces the LMI (Lenders Mortgage Insurance) you need to pay if you do not have the 20% deposit. It is also important to remember there are upfront costs in buying a home, such as stamp duty, legal fees and inspections (pest, building, engineering), so you will need to allow for those extras. Our team can help you set up a budgeting plan and get you on track.
3. If you have any credit cards, loans or student debts, try your best to reduce these or pay them off. Lenders will look at your expenditure and if you can comfortably afford the repayments of your loan. It is also important that you reduce credit limits, as these are seen as risk/debt in the application.
4. Ensure you have all the necessary paperwork ready on hand. We, as mortgage brokers, will guide you on what you need to provide and assist you in completing the necessary paperwork. We also check the documents provided are in the correct date range to avoid any delays.
5. Apply for your pre-approval and be prepared. A pre-approval will usually last between 3 and 6 months. This can be your best asset when making an offer and purchasing your new home or investment property.
At Dream Freedom Financial, our team work with you to find solutions that will aid you in making your dreams of homeownership, investing, or business come to life. If you would like to speak with a team member and get your application underway or for advice on where to go next, reach out, Click here.
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