Preparing for the unexpected purchase
Being unprepared for the unexpected purchase can prove costly in the long run. But there’s an easy way to avoid the heartache and stress.
There is a funny thing about property buyers. They often tackle the property search in a very rational way, with a commitment to view many properties until one eventually ticks all boxes. But when buying a property, particularly a home, emotions will always play a key role, which means there is always the chance of a spontaneous purchase.
Think about the buyer who notices a house – the dream home – while walking one day to the local shops and makes on offer that very evening. Or, what about the casual auction attendee who makes a winning bid after seeing the property for the first time just minutes before.
You never know when the right property will come along, so you need to be prepared from the very beginning, especially when it comes to finance. You need to have a clear understanding of your borrowing capacity, the type of products that suit your needs and, importantly, what sort of documentation you may need to obtain on short notice.
This is why I strongly recommend buyers seek out advice from their finance broker before even stepping foot into a home open, to help avoid any unwanted surprises in the event of a spontaneous purchase. A competent finance broker can quickly assess the buyer’s circumstances and make recommendations that best meet the buyer’s needs.
A finance application can be an involved process and there are intricacies that most people just aren’t aware of. Also, policies can change regularly, which can throw up unexpected hurdles. The biggest stumbling block tends to be the documents that a borrower needs to produce, such as tax returns and statements. It can take time for the borrower to gather all the paperwork that is required, a stressful situation when the property is already under offer and the finance deadline is looming.
Finding the right property can be an exciting moment but being unprepared and making uninformed decisions can end proving costly in the long run. Speaking with your finance broker early in the piece will help you avoid the potential heartache and stress and make sure you are prepared for an unexpected purchase.