Call your mortgage broker before you list your home for sale will save you lots of headaches and stress
Added on by Etairos AccountingGetting a clear idea of your financial situation and
arranging finance ahead of time can save you unnecessary headaches later on and
let you focus your energies on house hunting.
In a market of
greater credit history scrutiny, it is now even more important to have your
financial situation fully assessed before placing your home on the
market. Lenders' servicing criteria, although more flexible than early
post GFC days, still have strong boundaries and the uncertainty of how long the
booming property market will continue makes it more important to drop the
assumption that you will be able to afford the property you want.
If
your home is realistically priced, you should expect to sell quickly. So be
mindful - when you sign a contract to sell your home it is legally
binding.
If you leave it too late to organise finance
pre-approval, or you don't have approval for your maximum borrowing capacity,
you could find yourself in a dilemma during a pressured auction without the
full confidence that you can exchange on that contract.
Before
determining your borrowing capacity it is important to understand all the
financial impacts during the sale of your existing home and the purchase of a
new home.
