hi Steve
i’m half way through reading your great book. i’m really impressed!anyway i’m just a newbie and the following is just my 2 cents:
on page 187, you described the four steps to buy and hold. IMHO it
would’ve been better if you had put the second step, which is
“…you’ll need to organise finance”, to be the first step…….i think
first of all you need to make a budget and get the finance before you
go out, inspect properties and even sign a contract of sale. otherwise it could be a total waste of time.anyway i could be very wrong. please just correct and enlighten me.
cheers
hisshoHi mate,
Glad your enjoying the book. [
]The reason why I put getting finance after signing a contract is, in my experience, the practice of almost all lenders.
They require a physical property, or more accurately a signed contract to purchase, before they can issue (final) approval for finance.
Pre-approvals are always subject to conditions, which basically says that final approval will depend on the specifics of the property being purchased (e.g. independent valuation, validation of income etc.)
Furthermore, I’ve heard of people obtaining pre-approval but later having the application rejected, so IMHO it’s better to have a signed contract with a subject to finance clause in your hand when you go shopping for a loan.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
hi Steve
Thanks for your prompt reply.just a further question: wouldn’t a vendor get upset if you went back to him and said “sorry mate, i just couldn’t get the finance.”? This could be a serious problem for newbies like me, due to their lack of experience in terms of the chance of getting finance approved…any tips?
cheers
hisshoHi Hissho,
just a further question: wouldn’t a vendor get upset if you went back to him and said “sorry mate, i just couldn’t get the finance.”?Nope – happens all the time.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
hissho,
Get a mortgage broker to come to your home to work out how much you’re entitled to loan.
Also, go to the hundreds of “how much can i loan” mortgage calculators online.
You should be able to finance or refinance if you have equity, a job, and/or a deposit if it’s your first IP and you have no other property.
kay henry
]
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