There is no Credit Squeeze for Self Funded Investment Property
Whilst COVID-19 is impacting on us all in so many aspects of life, the good news is that there is plenty of money to borrow. We are not in a credit squeeze.
Whilst there is an abundant amount of cheap money available to borrow, it is getting finance approval, and having banks locked into those approvals that are the battle.
Due to increased enquiry due to CO-VID19, it is not unusual that the application for a loan longer than usual and the banks are looking for far more evidence of people’s employment, income and expenses, and risk profiles.
4 Tips to Get Through the Investment Property Lending Process
Here are 4 helpful tips for a smoother lending process:
1- If you are ready to buy (there are some great opportunities at present) you need to get an application in now. You need to get finance approval before you start looking
2– You must use a broker. The success rate of anyone sourcing finance for themselves is extremely low. This can be from picking the wrong finance institution, completing forms incorrectly, not knowing the traps that exist in a loan application that should be avoided, and purely the amount of time it takes to process the application.
3-The broker must be highly experienced and work with a wide range of financial institutions. The right broker could have access to over 50 different banks and generally, the second-tier banks are hungry for business, are hugely competitive, and are so much easier to do business with.
Self- Funded Freedom’s clients only deal with the most experienced brokers in the country and are fully open for business and can save you a considerable amount of money.
4- Once you have finance approval you must move quickly to buy within two weeks of receiving your approval because generally, approval will only last for two weeks, you would be required to update the bank on your status. This is because many people have had working hours cut back or people are still losing jobs and they want to make sure anyone they are financing has not been affected in a couple of weeks since the approval.
Let Self Funded Freedom Help You!
Self-Funded Freedom’s property acquisition team will ensure the right property is selected & ready for you in time. There has never been a better time to buy. Interest rates are at all-time lows and really can’t go any lower. There are fabulous finance packages on offer. For those who want to take advantage of the current market, let’s start the conversation to capitalize on the opportunities.