Buying a home is likely to be the biggest purchase you will ever make, how often do you go out and spend say half a million dollars. Let's make no mistake, it's stressful, and it's a big deal.  What we're talking about today is how to help manage some of that process by being prepared before you start shopping by obtaining a pre-approval from the lender.

A pre-approval will determine exactly how much you can borrow and how much your repayments will be. Pre-approvals are far more accurate than mortgage calculators and other estimators as they take into account your entire financial position, credit score, credit report and circumstances. An online calculator cannot do this.

So what are some of the main advantages of a pre-approved loan?

Save Time

What if you find the house of your dreams? Next you go through the entire process of presenting an offer, having it accepted only to find the bank wont provide enough finance to complete the purchase. This can be both embarrassing and frustrating. Agents will soon start to pile pressure on you to exchange and you'll be frantically trying to find someone to approve you last minute.

Aside from that, it takes a lot of time for you to find that property and go through the processes only to discover you can’t afford it. If you have pre-approval you'll know exactly how much you can spend on your home. This saves you time since you can narrow down your choices immediately. It also saves a stack more time, as you already know the finance will be available and you don’t have to wait weeks for the bank to confirm their support or be searching for that document your lender wants. All the hard work is done upfront.

Save Money

Figuring out the most ideal lender, loan product, loan combination of fixed and split loans, researching how you feel about the options, possibly asking your parents or friends for their opinion on rates, this can all take time. We suggest doing this well before you are locking in a property purchase, the pre-approval stage is a great time to weigh up the options in depth and not rush this process. You'll feel less overwhelmed about the decisions you have to make. Once you're buying, you'll have building, pest, settlement time frames, and removalists to organize, so this is one less thing to think about.

No last minute hunts for paperwork

A pre-approved applicant is an organized applicant. I'm not going to lie here, if you want a lot of money from the bank you're going to have to provide enough paperwork and ID to confirm that you can and will repay them! Sometimes it feels like you need to provide blood and DNA samples. This takes time and can be stressful for applicants who are under pressure from the agent to exchange. We expressly advise NEVER to exchange prior to obtaining full approval. Therefore if you get all of this paperwork out of the way prior to shopping on the market for a property, you will find the whole process about 80% less stressful then if you went shopping for a home without pre-approval. On this one you just have to trust an experienced mortgage brokers advice, our pre-approved clients can't believe how much easier the process is. It's a time and pressure thing. We can also identify any unknown obstacles the bank uncovers well before you have the dream home in your sight.

There’s No Cost

It is important when you are speaking to your mortgage broker to know all the possible costs associated with any pre approval mortgage application. Pre approved mortgage finance, with most banks and lenders is fee free, and the pre approval lasts on average for 3 to 6 months, and is easy to update if your circumstances haven't changed.

If you have a pre-approval with a lender, this often enables us as your brokers to order a valuation upfront the minute you have 'offer and acceptance' on a property.

Instant Credibility

The real estate agents you negotiate with are likely to take your offer more seriously, knowing that you have pre-approved finance in place.

Strength To Negotiate

The pre-approved finance may give you more negotiating power on the property you want to purchase. With your finance pre approved, the seller may have more confidence in your offer and the associated finance application. As your broker we are happy to discuss the strength of your approval with agents, because if we can cite the approval conditions (with your express permission), and if the approval is only subject to valuation, this can be a strong draw card.

A pre approved mortgage application doesn’t always mean that your home loan will be approved, once you have found a property to buy. The bank or lender will still (generally speaking) need to value the property you have brought, and meet any other conditions.  Generally speaking though, if your home loan has been pre approved subject to valuation, you can move forward to full approval very quickly.

 

Recent upgrades to the Commonwealth Bank’s “My  Wealth” platform have made an already powerful personal finance manager even more versatile. My Wealth enables you to build a diverse portfolio of investments including cash, property, shares and super in one place, with all  the resources, guidance and up to date news you will need to
succeed.

My Wealth was originally launched in February  2013 and provides every necessary resource to create and manage your wealth.  Developed following nine months of customer centred design research the platform has been designed to assist navigating the world of  investment.

Here are just some of the advantages and features  of this free service available to CBA customers:
       
Portfolio – Single log-in point to access and manage your wealth in one location.
      
Invest – A wide range of investment opportunities including cash,  superannuation, shares and property.
   
News – The app keeps you totally informed with news insights and  guidance.
   
Communities – Where you can share ideas with like-minded  investors.
     
Watchlist – Allows you to create a dummy portfolio to keep an eye on the performance of companies, suburbs or properties without having to invest a cent.
      
My Wealth Guide – An informative guide acts as a resource to help you navigate the world of investments.
    
Health Check – A compilation of tools to help you check the health of your portfolio in real time.

 Through the platform you can choose to invest in over 200 ASX listed companies, exchange traded-funds or invest in ready-made investment packs. You can also select from a range of cash investment options  including goal saver and term deposits.

If your investment preference is property you can access powerful suburb and property profiles, seek out properties that meet your specific goals or research information from the expert insights and news provided.

With the Essential Super option you can choose  from straightforward life-stage portfolios or invest in a mix of cash and Australian shares.

 The My Wealth platform provides Australians with  a simple, informed process for creating and managing their own financial future.  Featuring an easy-to-use investment platform, property valuations and search  functionality, stock market watch lists, hosted social communities, alongside  financial news and educational features from a dedicated team of in-house  journalists.

 Learn more at the My Wealth Website.

Here at Wilson Financial we have already told you about our FREE property profile reports available from the ANZ by following the instructions here. However Australia’s number one property website,  realestate.com.au is now offering free suburb reports and  assisting you to connect with local property professionals for a price estimate. This might come in handy where the ANZ reports cannot find statistically reliable evidence to support a profile. I am still to determine whether they are even using the same system, but it is always good to know about more resources so we wanted to put it out there regardless.

If you are thinking of selling your home or interested in current values, the reports can help you understand approximate value of your  property.


It’s as simple as providing a few essential  details such as the type of property, size of your property, the number of
bedrooms and bathrooms, property condition and basic property features. You will  instantly receive a free report containing the sold prices of properties similar  to yours, plus local median property prices and a snapshot of the area’s  property supply and demand.

The service will also put you in touch with a real estate agent who can provide a more detailed price estimate of your  property’s value. If a property professional isn’t available in your area, they  will provide a list of local agencies that can provide assistance.

Your free report will also provide a link to the  sites “Selling Guide” that can assist with information such as where to
advertise and how to make a good impression with tips for effectively presenting  your home. Additional resources include explanations of the selling process, when is the right time to sell and how much you should spend on selling your  property.

 Understanding the current value of your property can be useful if you are considering investing, renovating your current home or expanding your property profile. Knowledge of the available equity in your  property will likely assist you to make better borrowing and investment decisions.

Contact us today for further information or assistance with your financial requirements.

 You can obtain your free property report here.

The Australian Bureau of Statistics has released  the latest version (v1.2) of it’s informative “ABS Stats” Mobile App, now  available from the App Store for iPhone, iPad and iPod Touch devices. This  versatile data App was recently a finalist in the “2013 Excellence in Government Awards” for Service &  Delivery.

 The  App is extremely useful for  assessing demographics in relation to property buying for owner-occupiers and  investors alike. It essentially provides a snap shot of an area and compares it  to other areas you may be more familiar with, allowing the user to assess how  the demographics compare and how that changes the infrastructure and services  available.

The ABS Mobile App offers four categories of data & information:

Key  Indicators:
With access to 33 key economic indicators  including CPI, GDP and unemployment updated constantly as new data becomes  available, this category will assist with making better purchasing  decisions.

Census  Data:
Providing the most up-to-date data about people,  families and dwellings in postal zones and Commonwealth electoral divisions  helping to detail specific information about any area you may be considering  purchasing in.

 Population:
This option allows you to view population growth in a specific area with real time updates and calculates projections in forward time.

 The ABS Stats mobile app is available for download from the iTunes store  for free.

Local mortgage broker goes tech savvy

Local mortgage broker Liz Wilson of Wilson Financial is changing the way her clients interact with her business. Her latest innovation, and iPhone and Android app called the “Wilson Financial Pocket Wizard” will calculate stamp duty, borrowing capacity, even a home loan health check at the push of a button. If you want to know the RBA cash rate release the minute it happens, a push notification will be sent to your phone, it doesn’t get much better then that. With nearly 100 downloads since it’s release last month her clients are snapping up this new product and you can too, it’s all free. Wilson is known as a tech leader in her industry, with a one thousand strong twitter following, regular blogs, LinkedIn, and both personal and business facebook pages, she’s everywhere.

“We’re now using VoiP phones, and cloud backup, we print wirelessly and we synchronize contacts with all of our devices. We’re at a point in the business’s growth where using any form of technology to give us an edge is important. All staff use two screens to speed up our process’s, for instance, I’ll have three soon.” Says Wilson.

The man behind the iphone app business is innovator Adam King, the director of Mi Biz Apps who built the Pocket Wizard for Liz. He builds custom-branded apps that assist users throughout the entire process of obtaining a home loan; filled with handy calculators, a multitude of features and most importantly Wilson Financial contact information and unique business branding.

Adam will soon be able to offer solutions to other industries such as Real Estate and Accountants, and Liz urges others to jump on board with his services. “they blew me away with their service”, says Liz, ‘turnaround times from Adam and his team were astonishing. Any concept I threw at them, they had it ready in days. They were extremely accommodating and patient, as I can be a real perfectionist. I was able to talk to Adam throughout the process which was really fantastic. I feel he is revolutionizing our industry.’

Liz has personally enjoyed sharing her new app with clients, her staff, and business associates, including referrers and other mortgage brokers. She says, ‘the feedback has been tremendous and the app is already creating a buzz! I feel technologically validated and completely thrilled to have this handy little tool, not just at my disposal, but everyone else’s.’

Technology is changing how we communicate and do business, and apps provide an exciting introduction tool between business people. ‘A quick flick of the text and I can send the link to someone’s phone,’ says Liz, ‘it’s the new business card’.

 Free Property profile report on your property – just email Melissa with your
property address, number of bedrooms, bathrooms, car spaces and your property
type to melissa@wilsonfinancial.com.au
 
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