August 06, 2014
What is a pre-approval?
A pre-approval is when a lender gives you an approved amount you can borrow, based on a full assessment of your financial situation.
Assessing your ability to repay based on:
- Your income
- Living expenses
- Existing loans
- Credit history
- Stability of employment
Benefits of a pre-approval
- Saves time and disappointment by concentrating on properties in your price range that suit your budget
- Real Estate agents will consider you as a serious property buyer
- Gives you confidence for bidding at auction or negotiating a purchase price
- Provides you a leg up on other buyers
- Speeds up the approval process as the loan is already partially approved
Pre-approvals are only valid for a certain amount of time, generally 3 months. Once this pre-approval expires, you will be required to reapply with your Mortgage Broker.
A pre-approval is not a guarantee of finance; you will need to talk to a professional mortgage broker who will assess you situation and requirements.
The assessed pre-approval will typically be subject to valuation, any changes in the applicant’s personal circumstances and a suitable property being located.
Call today to arrange an appointment to discuss your pre-approval options with Mortgage Choice in Bundall 07 5504 5569 or email email@example.com
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