There are a lucky few that can afford to pay for their properties with cash, for the rest of us we need to go to banks to be able to have the money to purchase our properties whether they be our home or investments.
It is crucial to understand the lending criteria that banks operate under and have a strategy of choosing the right lender and products so that we can find the best deal for our own individual circumstances.
One of the most important rules to follow is not to approach just one lender but to compare as many as possible in the shortest period to gain a true insight as to what are the best lending options available for you.
The first question we all ask is “How much can I Borrow?” The next should be how much debt can I service from my current cashflow.
When it comes to your own home it is just you that will be covering all the costs? If you are considering an investment property, it’s not just you, as you have a tenant and potential tax rebate helping you cover the running costs.
Most people confuse a pre-approval with a borrowing capacity. A pre-approval is an actual application with a lender that goes on your credit history. A pre-approval will still have conditions on the approvals eg. valuations on properties.
A borrowing capacity is providing your information to a lender and establishing how much they will lend you and on what terms before you lodge an application. This process does not go on your credit history. The more banks that you obtain borrowing capacities from will give you a larger range of lending options and amounts.
First National Assist can help you in obtaining borrowing capacities from all the lenders across Australia in a matter of hours or days not weeks or months.