By Jack Aumuller, sales agent, McGrath Orange
I recently spoke to mortgage broker Amanda Gleeson from Compari Finance Solutions about the necessary preparation required before bidding at an auction.
Here’s the advice she gave.
What do you need to do if you’re purchasing a property for auction?
It’s certainly an exciting time and due diligence is the most important thing to ensure you’re fully prepared to take part in an auction. Here are three things you need to do.
- Engage in a mortgage broker – a mortgage broker will go through your income, perform a credit check and review your capacity to complete the sale.
- When you go to an auction and sign a contract, you need to be able to deliver. Your mortgage brokers’ job is to make sure all the criteria are met, checking your income, liability and ability to make an immediate deposit.
- Engage a solicitor. Your mortgage broker, solicitor and the real estate agent work closely together.
What does it mean if you’re the winning bidder?
If you’re the winning bid, you will sign contracts straight away, and there’s an expectation that you will leave a deposit. There’s no cooling-off period in a traditional sale so the bidder must be organised.
What should someone bring with them to meet with a mortgage broker?
When a client comes to a mortgage broker, we verify their income, whether they’re a wage earner or self-employed. We can liaise with their accountant to acquire copies of their last two tax returns, or bring two payslips. We need to know their liabilities. We need to verify their deposit to make sure they can fulfill the sale.
Some other tips for preparing for an auction, as well as having conditional approval of finance through your mortgage broker and having your solicitor look over the contract, you need to organise a pest and building inspection and have any changes to the contract made prior to the day.
We also suggest you register prior to the day of auction to ensure you are fully prepared.
If you’d like any more information on how to prepare to bid at an auction, feel free to give us a call at McGrath Orange.
Click HERE to watch our video…