Article published 20 January 2021
When you are in the market for a home or investment property, certainty is a valuable asset. A loan pre-approval can help provide you with just that.
It lets you set a clear purchase budget, negotiate strongly when you find the right property, and bid with confidence at auction.
Loan pre-approval gives you conditional approval for a home loan or investment loan.
It usually extends for a set period – typically three months, which can be extended with a review - and provides an indicative guide of how much you can afford to borrow.
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.
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.
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!
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.
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.
If you're looking at getting pre-approval for your home loan, spend 5 minutes on our free home loan quote to understand what you could borrow and the costs involved today!
Your local Mortgage Choice mortgage broker will provide you with access to a wide choice of lenders, including the major banks.
They understand the loan pre-approval requirements of these lenders, making it quicker and easier for you to apply for pre-approval.
And, when you have found your ideal property, we can streamline your formal loan application by preparing the paperwork, lodging the application and doing all of the follow up on your behalf!