A pre-approval gives you a solid indication of the amount that you are able to borrow before you start your house hunting journey.
In this article we will discuss the importance of being pre-approved for a home loan, the benefits and associated advantages.
What is a Pre- Approval:
A pre- approval gives you a solid indication of the amount that you are able to borrow as a mortgage before you start your house hunting journey.
Its important as it gives you a clear indication of what you are able to borrow, which in turn helps you focus on properties that are within your price range.
A pre-approval shows the vendor and the real estate agent that you are serious about the purchase, this may well give you the edge over other buyers in an extremely competitive market.
How do I go about getting pre- approved:
Its important to understand that a mortgage pre-approval is not a guarantee that you will get the loan, however it is a indication that you are a strong candidate for borrowing.
To get pre-approval you will need to provide all of your information to your mortgage broker or try and book a meeting with the bank. The information required includes;
- current income,
- regular expenses,
- liabilities, and
- credit history.
Your mortgage broker will be able to assist you in preparing this information.
How long does pre- approval last:
A pre-approval typically lasts for 90 days, this would normally give you enough time to find your home and make an offer.
A pre-approval for a home loan is not a one-time process. You will need to update your financial information if your situation has changed, you will also need to get re-approved if your application is about to expire. This can be quite common these days with the competition around home sales.
What role does my mortgage broker play:
Your mortgage broker will be able to help you with your home loan pre-approval, just as they would if you had a property in mind.
Your mortgage broker will negotiate with the lender and put your application together with all the information noted above.
A mortgage broker is on your team to help you to obtain the best outcome and maximise your lending potential.
A pre-approval will give you a better understanding of the loan process. It will also give you a firm indication of the amount you are able to borrow and a realistic indication of the price range you can purchase property in.
By having a loan pre-approval, you are able to act quickly in securing your new home, with a pre-approval your purchase offer is more likely to be accepted. Let your mortgage broker guide you through the process and arm you with a pre-approved loan before you start looking for your new property. Bidding on your new home with confidence might make all the difference!
By having a pre-approval, you are able to act quickly in securing your new home, with a pre-approval your offer is more likely to be accepted.
Let your broker guide you through the process and arm you with a pre-approved loan before you start looking for your new property.