Hello everyone.
I have had my first IP for a year now and it has gone from $180k to about %225K. it rents for 170/w leaving me about $100 out of pocket each week. I’m looking to fix this problem by buying a property for no more then $250k and wrapping. I’d just like to know when I can start putting offers in for property. I don’t want to drag some real estate agent about the countryside looking at places to tell them that I haven’t got a pre approval yet. I’m in the middle of refinancing useing a mortgage broker, but with the rate prices are going up, I don’t want to sit on my hands either.
All opinions, advice, critisim welcome.
Wild Nothing.
P.S.
Yes it is my fault for not arranging pre approval sooner.Refinancing shouldn’t take that long (max a month?). Once that is done a pre approval should only be 2 days. Your broker could also arrange a pre approval at the same time. At the very least he/she should be able to tell you if you qualify for another loan and how much you could borrow.
You can also make offers subject to finance.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw. Thanks for that. It’s only been about a week since I’ve started to refinance. I’m getting a pre-approval done at the same time. How do you think you can give yourself a rough idea of your borrowing capability? Or how does that real estate agent calculate your likelyhood of geting the loan? How much water does an offer subject to finance carry? Anyone?
Wild Nothing.Surely you make the offer conditional to securing finance and have that stipulated in any contract.
Yes I would agree with Terry’s advice below. You may need to stipulate successful in obtaining finance at 6% effective rate or under. things like that etc.
Wild
I wouldn’t beleive anything a real estate agent says.
Your broker should be able to tell you how much you can borrow.
If you get your subject to finance clause worded correctly, its water tight. Worded incorrectly could cost your dearly.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I would think that as its only an offer, its completely up to you. Until you exchange contracts, they cant hold you to anything surely?
Yeah, thaks for that everyone. I guess what I’m trying to get at is it common for people to make offers subject to finance or are most people cashed up? I don’t want to make an offer that the vendor/agent would accept, only to turn around and say, “Sorry can;t afford that much”, or worse, miss out on an oppurtunity that I could have afforded, because I didn’t have the bank telling me I could.
On thursday I’m going to look at at least one property which sounds good, has been on the market for 5-6 weeks and hasn’t had offers made on it. It sounds like it might be what I’m looking for for a wrap. Might make an offer, ‘subject to finance’.
Wild Nothing.Wild nothing
I have found that many people actually buy property and then get the finance.
If you send me all of your figures (all income, debt, credit cards etc), I can give you a rough idea of what you can borrow.
Terryw
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
The topic ‘offers before finance?!’ is closed to new replies.
