Why not to Accept the First Lender?
If you were renting your investment property and looking for tenants, would you accept the very first person that walked in the door or wait to talk to several people that might be interested in hopes to find a family that you believe will take care of your investment?
Banks look at you as a potential money maker for their business. If you have all of your ducks in a row then you will have plenty of options to choose from when it comes to finding a lender for your investment property. If you do your research, you will find that all banks are different in the way they handle their loans. For example: A bank loan department that is focused mainly on car loans will be much more skeptical about lending money for a foreclosed investment property which means that you will likely end up paying them more money for the risk they are taking.
Questions Lenders Will Ask:
- How much do you need to borrow ?
- What will the loan represent as a proportion of the property value (i.e. the LVR)?
- Are you borrowing for investment or personal purposes?
- How long do you intend borrowing for?
- Are joint incomes required to meet repayments?
- Which State/Territory is the property located?