Borrowing Power
You’re ready to take the big step and launch into the property market, but before you spend all those hours on the net searching out suitable properties and endless week ends traipsing around open homes, do you know for real, what you can actually afford? What is your borrowing capacity? Most of us have a bit of an idea, but there’s nothing worse than falling in love with a property, making an offer which is accepted and waiting nervously only to find that the bank says ‘no!’ – Shattering!
So, before you start all the research how about checking out your borrowing capacity. Many buyers arrange pre-approval through their lender to confirm how much they can borrow, and so avoid the disappointment of house-hunting beyond their budget. As a general rule these pre-approvals are valid for 3 months.
There are many on-line mortgage calculators available, but it’s worth remembering that your borrowing capacity will vary considerably from one lender to another simply because of the variety of lending and assessment criteria they use. Naturally your income and circumstances such as being an employee, or being self employed will also play an important role, and so does your saving history.
Even if you’re not ready to take the big step for a little while, it might be worth considering a chat with a broker like Scope Home Loans who can offer you some advice on how best to position yourself in preparation for the time when you’ll be ready to take the next step!
Recent Comments