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Astute East Brisbane's Finance Insights

Drawing on his industry experience, Tony Duncan shares his thoughts on industry changes, home loan requirements and a number of important areas to consider when planning your first home purchase or your next property investment. 

  • Writer's pictureSteve Dart

Is the Contract Subject to Fail? Ensuring You Have the Right Finance Approvals for a Successful Purchase

As your mortgage broker, our goal is to ensure you have everything in place for a smooth and successful property purchase. One critical aspect of this process is securing the right finance approvals before moving forward with a purchase contract. Here are key points we need to consider to make sure your contract isn't at risk.


1. How Old is Your Pre-Approval?


Pre-approval validity typically ranges from 60 to 90 days. Check the expiration date of your pre-approval. If it's approaching or has expired, we need to renew it to avoid any potential delays or complications. Let’s ensure your pre-approval is up-to-date and ready for action.


2. Has Your Pre-Approval Been Fully Assessed?


Ensure your pre-approval has undergone a thorough assessment. Some pre-approvals are only a preliminary review of your financial status. Make sure your pre-approval has been fully assessed, meaning the lender has thoroughly reviewed your income, expenses, and credit history. This provides a more solid foundation and reduces the risk of your finance falling through.


3. Are You Dealing with a Bank or a Broker?


Understand the difference between dealing directly with a bank and using a mortgage broker. Consider the benefits of each option. A bank may offer specific products, while a mortgage broker can provide access to a broader range of lenders and products. I can offer insights into various lender policies and help find the best fit for your needs.


4. Is Your Interest Rate Competitive?


Ensure the interest rate on your pre-approval is competitive. Compare the interest rate on your pre-approval with current market rates. If you initially obtained pre-approval during a period of higher rates, you might benefit from re-evaluating your options. I can assist in searching for a more competitive rate or a more appropriate product, potentially saving you time or money over the life of the loan.


5. Are You Still Within Your Pre-Approval Parameters?


Maintain financial stability within the pre-approval parameters. Avoid significant financial changes after receiving pre-approval, such as taking on new debts or changing jobs. Such changes can affect your borrowing capacity and jeopardise your approval status. Stay within your pre-approved limits and maintain a stable financial profile.


6. Have Property Prices Moved?


Account for fluctuations in property prices. The real estate market can change rapidly, as we have seen these past two years right across East Brisbane. If property prices have risen since obtaining pre-approval, you may need to reassess your budget and borrowing capacity. Stay informed about market trends and, if necessary, adjust your pre-approval amount to align with current property values.


Conclusion


By addressing these key points, we can help ensure you have the right finance approvals in place, reducing the risk of contract failure. Regular communication and proactive planning are essential in guiding you through the financing process and achieving a successful property sale.


If you have any questions or need further assistance, don't hesitate to reach out. As your mortgage broker, I'm here to provide support and resources, making your journey smoother. Let’s work together to ensure your sale goes through seamlessly. If you’d like more personalised advice, simply arrange an introduction, and we'll handle the rest.




 

Disclaimer:


Astute Financial Management Pty Ltd | ACN 093 587 010 | Australian Credit Licence 364253 | Davgan Insurance & Wealth Pty. Ltd. T/As Astute East Brisbane Corporate Authorised Representative (425641) of Alliance Wealth Pty Ltd | ABN 93 161 647 007 | AFSL 449221. www.centrepointalliance.com.au/aw | General Insurance provided by Astute Insurance Pty Ltd | ABN 59 622 582 236 | Authorised Representative of Ausure Pty Ltd ABN 94 096 971 854 AFSL 238433. Health Insurance products are underwritten by St Luke’s Medical and Hospital Benefits Association ACN 009 479 618 (St.LukesHealth), a registered private health insurer, [trading as Astute Simplicity Health] and members are introduced by Astute Financial Management Pty Ltd or related entities (collectively known as Astute) for which Astute receives a commission.


General Advice Warning: 


This communication contains general information only and in no way constitutes the provision of professional advice, nor should it be relied on as a substitute for financial, credit, accounting, legal or other professional advice. We have not taken into account your financial situation, investment objectives or particular needs. Before making an investment or financial decision, a person must seek appropriate independent professional advice and also consider whether this information is appropriate to their needs, objectives and circumstances. The author as well as their representatives, agents and employees give no guarantees and make no representations, express or implied, as to the accuracy, currency, completeness or suitability of the information contained in this document. Nor do they accept any liability whatsoever as a result of any information herein being incorrect, incomplete or unsuitable or as a result of a person in any way using or relying on the information herein.

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