Move Quickly

but be prepared

Things continue to move in a direction somewhat approaching normal, as restrictions continue to lift in QLD and activity increases bit by bit in most segments of the market.

While “Under Contract” signs are going up quickly on many properties, one thing that hasn’t sped up is the pace of most banks, as finance clause timeframes continue their climb upwards, with 14 day finance now a dream and even 21 days an ambitious undertaking, with many banks requiring upwards of 4 weeks to have an application considered and dealt with.

As a buyer, there are certain things you don’t have much control over when it comes to that process, but you can remove excuses for delays by making sure you have all your documentation in readiness sooner rather than later. Given we are now in July and into the new financial year, this is even more critical as quite often banks will be looking for your most recent tax return to provide the best indication of your current position.

Combine the need for up to date data with (hopefully) a refund back into your pocket and there is twice as much motivation to see your accountant early. And before you go looking for that new TV, don’t forget that on the fringes of LVR caps, an extra couple of grand can make a big difference in how many lenders will look on your application favourably and indeed what interest rate you might have to pay.

Aside from the obvious benefits of getting the finance and being able to settle on your new home, having all this information prepared prior to making an offer can be the difference between a successful contract or otherwise. More and more we are seeing situations with multiple offers being submitted on properties, and anywhere you can improve your offer, even with something as simple as a shorter finance clause and settlement timeframe can be beneficial.

If you have already signed a contract and gone with a shorter finance clause date which is quickly coming up, you CAN request an extension of the seller, but they are under no requirement to say yes, and can choose to allow a contract to terminate and move on. If you do find yourself in this position, do yourself a favour and be upfront with the agent (and owner) with your request. A detailed letter stating the (reasonable) Hows and Whys of an extension will be more likely to see a yes than a simple “we want more time”.