You may have been to a bank for a loan and maybe even a mortgage broker. So what is a lending specialist and how can they help you?
We’ve identified 4 key reasons why you may want to work with a lending specialist on your next property purchase, or to assess your home loan options.
1. Getting your finance approved on time is vital
In the current property market stock is scarce and selling fast. Vendors (sellers) may have multiple offers and can quickly pick up another buyer if you (the purchaser) don’t meet key deadlines within the purchase contract.
Different states have different laws around purchase contracts so always check in with your real estate agent or solicitor. Where you have a “finance clause” this is normally around 14 days. Which means within 14 days of signing you need to produce an unconditional finance approval to the purchaser or they can terminate the contract – and you may forfeit your deposit. This may seem like sufficient time but don’t rest easy!
Most major lenders are currently struggling with service and may take up to 6 weeks to approve your loan! This may apply whether you’re pre-approved or not. A mortgage broker may have helped you select a lender based on product price or features – but may not have factored in the service timeframe.
This is where a lending specialist can give you an edge. At times a lending specialist may also have access to specialised lenders or products not available to the general retail market or mortgage brokers. These lenders or products may offer fast loan assessments and at times the features and price can match or beat the major banks!
So when getting your finance approval on time is key, consider a lending specialist.
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2. Actually getting your loan approved
For a lot of mortgage brokers, they specialise in helping you find a lender and home loan based on price and features.
That is very important, but what’s also important is getting your loan approved!
Generally speaking, a lending specialist will have access to more assistance and be more knowledgeable in areas such as credit and lender policy, so they will help you choose a lender that can assist you, and also meet your needs.
This means working closely with you and the chosen lender, ensuring all documentation is correct and that the lender fully understands your unique position. A lending specialist will also have access to products suited toward self-employed borrowers.
Speaking directly with the lender credit team, your lending specialist will help you gather all the required documentation, adjust your loan application with you as required, and ensure everything runs smoothly right through to settlement and beyond.
3. Pre-approvals and valuations are key
It’s best practice to look at finance very early when you consider buying or investing in property.
Knowing your buying power, options, and costs are all important factors for you to consider. But knowing your purchasing limits alone are not enough. What are your overall costs? What are your repayments? Am I eligible for any government incentives or concessions? These are also important factors to consider.
A lending specialist can work with you very early on – from the planning and budget stage and the property research stage, and then to a full pre-approval – which is bank assessed. A generic bank or computer based pre-approval may sound good – but it doesn’t take into consideration your full personal position. If this type of pre-approval misguides you it could place you in a bind if you’ve signed a purchase contact and paid a deposit.
A lending specialist will guide you along the whole way, work with you after settlement and beyond, and help you access any government grants or stamp duty concessions.
This can potentially help you save thousands and assist you with your deposit amount.
Related Post: What is a full pre-approval?
4. You’ve settled your loan – what happens next?
Congratulations! You’ve purchased a property or refinanced your home loan and everything seems great.
Your home loan term is normally 30 years but like everyone you want to become debt free. This allows you to enjoy greater freedom and options in later life. Your bank won’t help you here and generally mortgage brokers wait to hear from you.
Wouldn’t be nice if someone checked in with you every 6 – 12 months, maybe offering free property and suburb reports, making sure your home loan is still working for you, and importantly helping you stay on track with your financial goals?
Your lending specialist is with you all the way. You’ll be a customer for life as they guide you and also your family members if need be. They offer a full range of options, and specialise in property markets and property lending.
So you’re taken care of from your first property purchase all the way to retirement – and hopefully being debt free before then!
How do you get started?
Sound good? Getting started is simple.
To learn more — view our loan options, or speak with one of our local lending specialists in person, or via phone or chat.
Download our handy ebook today!
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This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.