If your finance isn't arranged & approved, don't bid, don't buy!!

Buying real estate is a BIG deal for most of us, so don't screw it up!

Most solicitors and advisers will strenuously advise their clients buying a property to ensure their finance is unconditionally approved before committing to a purchase.

It's important to also realise that "indicative approval" or "pre-approval" for your home loan application is NOT the same thing.

Entering a purchase contract is the real thing. If you can't afford to complete your purchase, you may end up losing more than what you bargained for. The story in this article in today's Sydney Morning Herald is a simple but clear example of the possible consequences.

The buyer breached the contract they entered because they couldn't get the funds, borrowed or otherwise, to buy the property they bargained for. The seller subsequently sold the property to another buyer for significantly less than what the first buyer had contracted. The seller successfully sued the first buyer for the loss suffered resulting from the first buyer's breach of contract, being largely the difference between the price in the first contract and the lesser price in the second contract.

Take care!