Why you should get a pre-approved home loan
When searching for a home, it’s a good idea to know what you can afford ahead of time. That way if you find a house that you love, you can make an offer almost straight away, rather than having to go back to your lender to discuss whether you will be able to apply for the purchase.
It’s also beneficial if you’re interested in a home with a lot of interested buyers. Some open homes are so busy that the real estate agent will have to pick and choose who they talk to, so if you can show them you are a serious candidate, you are more likely to have one-on-one time with the vendor.
If you’re considering buying at auction, it most cases you will need pre-approval to be able to bid. If you are building your own home, it’s important to have pre-approval to inform your choices when planning out your home.
A pre-approved loan will give you a time frame of about three months in which to search for a home.
How to 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, such as savings, investments and high-value items like 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.
We place huge emphasis on educating our clients, so that they can be personally confident in their decision.
Let us keep you updated with the latest information so you can reach your goals faster.