How to Get Finance to Buy Real Estate

How to Get Finance to Buy Real Estate

Unfortunately, it is more difficult even in this day and age, for a woman to purchase real estate than it is for a man.  To qualify that statement, it is actually more difficult for women to get the finance to purchase property. Do banks think that a man is more trustworthy than a woman when it comes to repayments? Or could it be more to do with the fact that a woman who has children is more likely to have a lower paid job because she cannot put all her effort and attention into her career when she has children to look after? This may not be true for all women, but it is for some, at least.

In any case, if you want to buy real estate, the best way to get finance is to first save up at least 20% of the deposit. This will not only ensure you pay less interest overall, but it will show the lender that you are a responsible person who is capable of saving. This may require you to seek help from a financial planner to help set you on the right path.

It is also a good idea to have a good plan to back up your request, including any likelihood of you getting a raise in the future. Some careers come with opportunities for advancement, so it doesn’t hurt to mention these. You need to be able to show the lender that you have paid your bills on a regular basis for at least 6 months, more if possible. And if you have had other loans that you paid off successfully, bring proof along with you.

You need to have a solid business plan to show the lender so that they know you are not just jumping into the deep end on impulse and are likely to fail in your vision. If you don’t know how to do a plan, get professional help. It can make all the difference between the lender looking on your request with favour, or showing you the door.

The best way to buy real estate is to get pre-approval. This means you have been to the bank and they have agreed to lend what you need ahead of time. Once you show this to the real estate person, you will be taken seriously and given the first opportunity to buy.

However, if you intend to purchase through auction, it is necessary to have the money sitting in your bank account so that you can pay immediately.

It is wise to watch the purchase price and the market before you buy real estate. If you are buying to sell, try and get the lowest price. If you don’t buy low and sell higher, there won’t be any profit in it for you and you may even lose money. The main thing is: never give up. If one lender refuses, go to many others.