Property Investment – What You Should Consider
Take the emotion out When buying an investment property you should treat it as a business decision and not be emotional. A common mistake is that people buy a house…
Purchasing property can be exciting, however after purchase it is easy to forget that the process has only just begun. We can help from pre-approval through to final settlement – taking the stress out of the process and helping you find the right loan.
Check out our calculator or meet with us for an evaluation customised to your specific circumstances.
Call or email Investors Choice today to discuss your borrowing capacity – it could be more than you think!
It can be confusing and time consuming for you to assess all the different lenders and products on the market. Investors Choice are dealing daily with lenders and have the expertise and tools to quickly evaluate, using specifically designed software, the right loan to suit your needs. We believe in looking at your long term investment goals and making sure you have the right loan structured to enable you to achieve these goals in the future.
We assist you with the completion of documents before you submit your home loan application and supporting documents to the lender of your choice. We keep you up to date with the progress and approval of your application, and we are available to assist you with the execution of the mortgage documents.
Once the paper work finishes there are countless checks and steps that continue through to final settlement. We will keep you up to date and informed every step of the way to make sure you know what is happening with your investment.
Legal advice and risk management is imperative when looking at your long term wealth future.
Solicitors and conveyancers are an important step that should not be over looked. Your solicitor may make changes to the contract that could save you thousands, give you early access before settlement, or even reduce the requested deposit.
A financial planner or accountant may also suggest a structure to give you more protection over your assets.
Once you have decided on your property, and have your loan pre-approval, the formal exchange of contracts takes place.
Your signed and completed Loan application will be submitted for approval immediately.
Your application will then be assessed by your preferred lender who will advise their decision within 1 to 5 working days. If your application has been successful, your preferred lender will issue their Conditional Approval which may be subject to:
Once these conditions have been satisfied, your lender will issue their Formal, Unconditional Approval, usually within a further 3 to 5 working days.
Once your home loan is formally and unconditionally approved, your loan documents will be mailed directly to you. It is important that you check through the details of your documents thoroughly before signing. Some people choose to use their Solicitor or Accountant to assist with this. It is also important that you return your documents as soon as you conveniently can, especially if you are in a hurry for the loan proceeds. It will also be necessary at this stage to arrange insurance for your home unless it's covered by strata title insurance. You will be required to provide a Certificate of Currency noting the Lender as the interested party prior to settlement.
If you're purchasing, it is usual for settlement to occur on the date specified in the Contract.
If purchasing, you will need to notify your Conveyancer or Solicitor that your home loan has been formally and unconditionally approved. They will then prepare the necessary documentation to enable the property to be legally transferred to you.
Your Conveyancer or Solicitor will contact the lender to arrange a time for settlement in line with the date specified in the Contract.
If you are re-financing, settlement is the date that your old loan is repaid and your new loan starts. As soon as you have returned your loan documents, your current lender is contacted and asked to confirm a 'payout figure' and a date for settlement.
A few days prior to settlement, your Conveyancer or Solicitor will advise you how much you will need to contribute for the balance of your deposit and all the government fees and charges. In most cases, they will request that you provide them with a Bank cheque the day before settlement.
Your Conveyancer or Solicitor will notify you once settlement has taken place. You can then collect the keys.
What's Next?
Within 2 weeks after settlement, you should receive from your new lender a letter confirming settlement of your home loan. The letter will also detail how funds were disbursed at settlement and when your first home loan repayment is due. You will receive any ATM Cards, Credit Cards, Cheque Books, PIN and passwords that apply to your new home loan package.
Insurance
It is important to be fully protected. We recommend you seek professional advice to ensure that you have adequate death, disability, income and general risk insurance to cover your loan borrowings and repayments.
If you're purchasing, it is usual for settlement to occur on the date specified in the Contract.
This brief flow chart gives you an idea of time frames associated with putting in a loan application all the way to settlement. Each lender differs however 6 weeks settlement usually gives enough time to get everything processed.
Be aware things do not always go to plan. If you are using a short settlement as a negotiation technique check in first to see how lenders processing times are going. From Easter 07 to June 07 most major lenders are running five to 10 days behind the normal service level.
