Before you even start searching for any property to buy the very first set is to determine your ability to borrow and service any loans required to make your purchase.
Your current financial situation is a determining factor in the price you can afford to pay for a property. It makes no sense to be looking at properties if you are unable to find the dollars to make a purchase.
The first step to buying your dream home is to meet with a mortgage broker. With their guidance you’ll ascertain what your borrowing capacity is. They will run the figures and guide you with working out your household budget and listing your assets and liabilities.
By calculating these salient figures, your mortgage broker will be able to calculate what you can afford to borrow. Then by adding your available deposit to the amount your mortgage broker indicates you can borrow you will know exactly how much you can spend on a property.
Your time is valuable and there is nothing worse than the disappointment of looking at properties you can’t afford, it’s a recipe for heartache. So, save yourself the stress, meet with a mortgage broker and get your finance organised first.
If you want to jump start the borrowing process in the first meeting with your mortgage broker by giving them the documentation they will need to have your loan pre-approved – here’s what you will need to have ready.
For an Owner-Occupied Purchase:
The documents below must be supplied by all parties applying for a loan or seeking a pre-approval for a loan.
- Two (2) most recent consecutive payslips (must be no older than 6 weeks)
- Tax Return for the last financial year
- Notice of Assessment for the last financial year
- Financial statements (if self-employed)
- PAYG Summary (previously known as Group Certificate)
- Contract of sale (not required if applying for a loan pre-approval)
- The last 3 months of ALL personal transaction account statements
- The last 1 month of ALL credit card statements (if applicable)
- The last 3 months personal loan or car loan statements (if applicable)
- Identification documents – Passport AND Australian Driver License
For an Investor Purchase:
If purchasing an investment property, you will need to supply all the above plus
- Rental ledger or rental appraisal
- Rates notice to confirm ownership
- 6 Months home loan statements (if refinancing).
Ready to get started? Call us now on 1300 888 299 or send us an email and we’ll have one of our Mortgage Brokers contact you to discuss your finance options so you can move forward with purchasing your dream property.
General Advice Warning: This blog is not designed to replace professional advice. It has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the advice, in light of your own objectives, financial situation or needs before making any decision as to what is appropriate for you.