Home Loan Options for Adelaide Investors and Families: Pre-approved Home Loans
Pre-approved home loans are a common way to secure a mortgage ahead of time.
When you apply for a home loan pre-approval, you won’t yet know which property you are looking to purchase.
The purpose of a pre-approved mortgage is that it gives you a clear idea of how much money you have to work with. This means that you can narrow your search to appropriate properties from the start, rather than looking at homes below or above your price range and potentially wasting time.
Organising your pre-approval is free, there is no obligation to buy once you’ve been approved, and the term of the agreement usually lasts for around three months so you have ample time to find a property that suits your needs.
Using AAA Mortgage Solutions to secure your pre-approval can be beneficial as an array of lenders will be contacted with your details, giving you the option of several agreements and potentially a faster service. It will also save you the hassle of going to individual banks and lending institutions to find the best agreement for your needs.Book a FREE appointment with a professional mortgage broker now!
Why do you need it?
It will give you the confidence of knowing that you will be able to move forward with your property purchase when you find a home that you are interested in. This means that if you love a place, you don’t have to then go back to your lender and discuss whether you will be able to apply for purchase. Instead, you can make an offer almost instantly with the knowledge that you have already been approved to offer within a certain price range.
A pre-approved loan will also give you a time frame in which to search for a new home. Usually lenders will approve a loan limit for a three-month period, which means that you have a specific time to find a property, and once you do, the process is much faster. This means that rather than drawing out the process for a longer time than necessary, you can keep your property search moving forward and on schedule.
This type of loan also shows real estate agents and vendors that you are serious about buying. Some open homes are so busy that those running them have to pick and choose the people they can talk to, so if you can show them that you are a serious candidate you will be more likely to be able to ask questions and have some one-on-one time with the vendor.
If you are considering buying a home at auction then a pre-approved loan is one of the best ways to bid. Most auctions are unconditional, which means that your finance has to be approved before making an offer.
How do you get a pre-approved loan?
You will need to meet some conditions before you are pre-approved for a loan.
Most lenders will require you to prove your income with either a recent pay slip or a letter from your employer.
Any other assets will help as well, such as savings, investments and high-value items such as vehicles.
You will have to show your lender any debts you currently owe, such as student debts, credit cards and hire purchases.
From there you may get a conditionally approved loan, which means that once you decide on a property it must meet certain conditions before the loan can go through.
If you’re interested in finding out more about pre-approved home loans, or if you’re ready to get started on a pre-approved mortgage of your own, give AAA Mortgage Solutions a call today on 1300 555 888.
The experts will be able to help you apply for a pre-approved loan, as well as assist you in deciding which mortgage option will best suit your needs.