De­lays are in­evitable in gain­ing fi­nance, but there are ways to help

The Weekend Post - Real Estate - - Front Page -

THINGS con­tinue to move in a di­rec­tion some­what ap­proach­ing nor­mal, as re­stric­tions con­tinue to lift in Queens­land and ac­tiv­ity in­creases lit­tle by lit­tle across most seg­ments of the mar­ket.

While “Un­der Con­tract” signs are fast pop­ping up, plas­tered over many prop­erty “for sale” signs, one thing that hasn’t sped up is the pace of most banks. It seems fi­nance clause time­frames con­tinue their climb up­wards, with 14-day fi­nance now a dream and even 21 days an am­bi­tious un­der­tak­ing. It’s now com­mon for many banks to re­quire up­wards of four weeks to have an ap­pli­ca­tion con­sid­ered and dealt with.

As a buyer, there are cer­tain things you don’t have much con­trol over when it comes to that process. That said, you can ac­tu­ally re­duce some part of the de­lays by en­sur­ing you have all your doc­u­men­ta­tion ready sooner rather than later.

Given we’re now in July and into the new fi­nan­cial year, this is even more crit­i­cal as quite of­ten banks will be look­ing for your most re­cent tax re­turn to pro­vide the best in­di­ca­tion of your cur­rent fi­nan­cial po­si­tion. Com­bine the need for up-to-date data with (hope­fully) a re­fund back into your pocket and there’s twice as much mo­ti­va­tion to see your ac­coun­tant early.

But be­fore you go look­ing for that new flatscreen TV you’ve al­ways wanted, don’t for­get that on the fringes of LVR caps, an ex­tra cou­ple of grand can make a big dif­fer­ence in how many lenders will con­sider your ap­pli­ca­tion favourably and what in­ter­est rate you might have to pay.

Aside from the ob­vi­ous ben­e­fits of ob­tain­ing fi­nance and be­ing in a po­si­tion to set­tle on your new home, hav­ing ev­ery­thing pre­pared prior to mak­ing an of­fer can be the dif­fer­ence be­tween a suc­cess­ful con­tract or oth­er­wise. More and more we’re see­ing sit­u­a­tions with mul­ti­ple of­fers be­ing sub­mit­ted on prop­er­ties, and any­where you can im­prove your of­fer, even with some­thing as sim­ple as a shorter fi­nance clause and set­tle­ment time­frame can be ben­e­fi­cial.

If you’ve al­ready signed a con­tract and gone with a shorter fi­nance clause date, you can still re­quest an ex­ten­sion of the seller, but they’re un­der no re­quire­ment to say yes. They can also choose to al­low a con­tract to ter­mi­nate and move on.

So, if you do find your­self in this po­si­tion, do your­self a favour and be up­front with the agent (and owner) with your re­quest.

A de­tailed let­ter stat­ing the (rea­son­able) “how’s and why’s” of an ex­ten­sion will be more likely to see an af­fir­ma­tive re­sponse in your favour over a blunt “we want more time” ap­proach.

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