I didn't know that. Words a home buyer should never utter.

Curiouser and curiouser. Things are no longer as they seem. "But I didn't know" you may argue? There are 3 key things every buyer needs to be aware of before they go out and negotiate to buy in this current property market.

The worst possible outcome for any home buyer is to go through the stressful experience of finding a home, wheeling and dealing with an agent, finally managing to agree on a sale price and then after signing on the dotted line to find out to your utter dismay that the bank is unwilling to take on your loan.

Or the bank needs you to put up a bigger deposit.

Or your valuation has come in short.

Or you won't be able to settle.

The consequences of any of the above situations happening to you 'after' you have already signed a contract could spell disaster. You may find yourself in a position which not only will cause you and your family undue stress, it could place you in a very vulnerable position financially.

Here are the 3 tips I give to all my clients who are seriously looking to buy a property in our softening property market.

1) Pre-approval

Have your pre-approval in and accepted with a lender prior to buying. This is an absolute must in the current market. Right now with may lenders there are too many hoops to be jumped through when getting assessed for a home loan to leave it to after the fact. It is a dangerous game to play otherwise.

Give yourself the peace of mind that there will be no issues with securing the finance before you do anything. This is a non-negotiable right now.

2) Your mortgage broker has the answers

Pick your mortgage brokers' brains about what you need to be aware of when buying a property.

• Will the bank accept the type of property you want to buy?

• What terms are best right now?

• Is a 30 day settlement even possible?

• What's the minimum deposit you can put down?

• 30 year or 40 year loan?

Think of it this way. As a mortgage broker, my day to day is knowing exactly this. The more you understand what you can and cant do and what to expect, the smoother the process.

Ask ask ask.

3) Be willing to think outside the square

A mutual bank? A bank without branches? A bank which offers specials based on your occupation? A bank which has a greater 'community consciousness'?

There are so many options out there if you are aware of them. Your mortgage broker alone knows about these options. You only know what you know. Be open to advice about what your options are so that you can make the best possible choice for you.

9 times out of 10 there is always a way. It just may not be the way you think.

Never say those words, 'I didn't know that',

Speak to me.

Bernadette Leahy

Authorised Mortgage Consultant

For more tips on negotiating your way through the current market, please contact me bleahy@theedgemortgages.com.au or 0438 010 477.