The amount you are able to borrow is known as your “borrowing capacity”. It is based on the following factors:
SDK Finance, as one of south east Melbourne’s leading mortgage brokers, is able to help you clearly determine your borrowing capacity before you commence house hunting. More importantly, we can help ensure your finances are in order when you come across that dream home. The sooner you meet with SDK Finance, the more informed you’ll be at the early stages of the buying process.
Don’t base the budget for your next home only on the projected selling price of your current home. Unfortunately, you might not receive the price you are looking for.
Your upgrading budget should also consider the cost of selling your current house. This will shape the profit made on its sale, and therefore how much money you can put forward to the overall purchase compared to how much you will need to borrow.
It can be devastating to find your dream home only to learn that you can’t actually afford it. What’s worse is losing your deposit because you won at auction but couldn’t secure the money for the balance of the purchase price. Secure pre-loan approval before going to auction to alleviate this risk.
With pre-loan approval you will know exactly how much you can borrow and how much you can spend. You won’t waste time looking at homes that are way out of your price range. SDK Finance can help you secure a home loan pre-approval before you begin hunting.
If you would like to enlist the services of SDK Finance, whether it be to determine your borrowing capacity or secure pre-loan approval, feel free to get in contact with our friendly team of brokerage experts.
We are committed to providing home loan seekers with an impeccable standard of service and communication, and will be happy to help you with your enquiries or book you in for a consultation at a time that is most suitable for you.
Call us on 0438 205 886 or submit an enquiry form on our contact page. We will get back to you as soon as possible and with all the information you require in regarding to determining your borrowing capacity or securing a pre-loan approval.