5 great reasons why a loan pre-approval could be your secret weapon when searching for your next property!
1 You have a clear spending limit
Loan pre-approval tells you how much you can borrow so that you can shop for properties that are within your price range and not waste your time looking at properties you cannot afford.
2 A financial safeguard
With loan pre-approval in hand, you are unlikely to make an offer, or pay a deposit on a property only to discover you are unable to secure finance to complete the purchase.
3 Extra negotiating power
With your loan pre-approved, estate agents can see you are a serious buyer and in a position to act quickly.
This can give you extra clout when it comes to price negotiations with vendors!
4 Bid with confidence at auction
If you are buying a property at auction, pre-approval is a must-have. When the hammer falls at auction, the highest bidder is committed to the purchase – there is no cooling off period.
Having loan pre-approval in place means you can bid with confidence up to your approved loan limit.
5 It costs nothing - but could save you plenty.
Arranging loan pre-approval won’t add to your purchase budget.
Usually, there is no cost because the lender’s normal loan application and establishment fees don’t apply until you are formally approved for a loan.