Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of c-manc-man
    Participant
    @c-man
    Join Date: 2009
    Post Count: 15

    Just a quick question..

    When your looking to buy an investment property, do you go to the bank first and apply for a loan? or do you look for a property first, get in a contract that says pending finance and then go to the bank and say here is what I want, here is the research, show me the money?

    Kind regards,
    Corey

    Profile photo of howardcmhowardcm
    Member
    @howardcm
    Join Date: 2008
    Post Count: 65

    WOW. I suggest you do some reading
    Do you have any idea how much you can borrow? If not why would you start looking?

    Profile photo of BennyteeBennytee
    Participant
    @ten_burner
    Join Date: 2006
    Post Count: 243

    Hi Corey,

    I would definately go to the bank first  or call them and get a pre-approval for a loan

    realestate agents take you more seriously  instead of treating you like a tyre kicker

    and you know how much you can spent  which stops you wasting your time to, then you can focus on property in your price range

    a pre approval still has some conditions attached so you would still put in your finance clause or if like me you could put in just one:  Building inspection to purchasers satisfaction..  if  you have any problems with finance you can walk away and say you werent satisfied with the building inspection..

    an offer with one clause attached looks better than one with 3 or 4

    Profile photo of slowachieverslowachiever
    Participant
    @slowachiever
    Join Date: 2006
    Post Count: 34

    Definitely see or call bank first , also see CBA website some calculators there very handy to get a ballpark idea . Have a  listen to the webinar that was presented  this week on Tuesday .

     Do your own self test and add up how much you spend on food , bills ,car expenses , fuel etc., and annual bills divide them down to the week or month , and see how much it really costs you to live on a weeekly basis It is a good start to see what is left of your pay  to invest with . Some of these questions the bank or alternative lender will ask  anyway , and require copies of pay slips .   Good luck on your journey .

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Certainly obtaining pre-approval can be handy but not if it means your lender wishes to cross collateralise your 2 loans.

    You would be better off to establish the line of credit on your own security first and then you can access these funds to cover the deposit (usually required when signing the purchase contract) and then get pre-approval from a separate lender for the new loan.

    Also serviceability websites mean very little as each lenders calculates the level of borrowing totally differently.
    Depending on the LVR will determine whether the loan is credit scored or not and if so other factors away from bottow line income will affect whether the deal is done or not.

    Your Broker should be able to assist you over these hurdles.

    Richard Taylor | Australia's leading private lender

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