When you make a decision to buy a home, that’s when you should speak to your bank or broker to get an idea of how much you can borrow.
The finance approval process can take quite a while, and you may well have found a home that you want to buy before you have your finance approved.
If you’re making an offer before you have finance approval, then (if it is a private sale) you should always complete the necessary details in the Contract to make your purchase subject to finance. This generally gives you an agreed period after the contract date (for example, fourteen days) for you to obtain your finance approval.
If you haven’t obtained your finance during this period, the contract sets out the procedure for you to terminate the contract and have your deposit returned.
But! Keep in mind that if it’s looking like you won’t get approval in time, it doesn’t necessarily mean that you’re not going to get it. It is possible to extend the date for finance approval, and it’s as simple as letting the vendor know that you need more time, and them agreeing to it.
Ordinarily, to get that extension, we would get in touch with the Vendor’s lawyers and make the request for you. So, if you’ve already signed your contract and is subject to finance, don’t waste time, upload it to the Transfer Centre so we can handle this for you.
One more thing to keep in mind – you cannot make an auction contract conditional on finance. If you’re planning to bid at auction, we strongly recommend that you obtain finance pre-approval before the auction.