Slow lenders are costing buyers their advantage
During the real estate buying flurry that we’ve experienced during COVID, we keep hearing the same story. Not from my clients, or Loan Market's clients, but would-be buyers who keep missing out.
Yes, it stands to reason that every bidder doesn’t buy the house as there's plenty of competition but that’s not the problem. Such is the volume of buyer activity that some lenders are not turning around pre-approvals in time for auctions, offers, or opportunities and buyers are getting burnt by the process.
It’s not all lenders, of course, and therein lies the problem. Borrowers don’t know who’s quick, who’s offering competitive rates, who’s suitable for them and who’s prepared to lend to them. And they certainly don’t know how long it’s going to take.
Have your clients experienced this? If so, what should they do? Get me involved, sooner rather than later. I know the banks like the back of my hands and the lenders like the lines on an application form (I’ve filled out enough of them over the years!).
With so many seemingly eye-catching deals catering to the first home buyer, particularly right now, it is difficult for the average punter to dissect the good from the bad, the fast from the slow.
Our friends at Ray White, have seen the Spring selling season in full swing. With continued confidence to soar across the Australian property market. With over 5,000 new properties on the market (seven per cent lower than this time last year), there’s lots of opportunity for borrowers.
Pre-approval gives your clients the scope and the security to engage in the property market - they know how much they can spend and they know they have approval to access those funds.
It doesn’t bind them to buying and being equipped with pre-approval is a crucial step towards getting on (or further up) the property ladder.
Let’s give your clients an advantage in this competitive market.
Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence number 390222). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter.You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Information included has been sourced from third parties and has not been independently verified. Accordingly, Loan Market Pty Ltd is not in any way responsible for nor provides any warranty express or implied as to its accuracy or relevance.