Are you ready to buy a property? For a large majority of buyers this will mean obtaining a loan! Although you cannot completely finalise a loan prior to signing a contract on a property you can obtain a pre-approval.
A pre-approval, conditional approval or approval in principle is the closest you can get to a full approval prior to signing a contract. This is your indication from the lender of whether they will lend you the amount you require to purchase your new property.
Some vendors and real estates will ask if you have one prior to making an offer- it helps them to know you’re serious about buying.
Paying a loan off over 30 years is a very daunting thought. Let alone the realisation of how much interest you will pay over those 30 years. Paying your loan off sooner keeps money in your pocket and could see you moving towards a strong financial future sooner.
We have listed some basic tips to help chip away at your loan faster!
Buying your first home is an exciting time however saving your deposit can seem like a very daunting task! Especially when this is possibly the largest sum of money you have saved in your life. (Not sure how much you should save? Check out our previous blog post “Purchasing Your First Home” to get more information about the process involved and how much you should aim for) As a minimum you need to aim for 5-10% of the property value.