February 28, 2013
If you are considering buying a property this year, one of the most important things you should consider before getting serious is having your property loan pre-approved up to a specific amount by a lender.
Online loan repayment calculators are a handy starting point, however it is important to note they only provide an estimate of your borrowing power and ability to repay.
On the other hand, getting a home loan pre-approved by a lender provides a conditional approval of a loan amount. This helps narrow your property search, giving you confidence and a competitive edge when negotiating a purchase.
A genuine pre-approval follows a similar process to a full loan application whereby you are assessed on your individual circumstances including verification of your identity and ability to repay the loan. Other conditions usually need to be met to move to full finance approval, such as a suitable property valuation.
Pre-approvals are usually granted for a period of three to six months and can be updated if your property search takes longer than the pre-approval period.
Check out our top five pre-approval benefits:
- Gives you time, without the pressure to buy, to explore your loan options thoroughly.
- Saves time (and lessens possible disappointment) by concentrating the property search in a realistic price range.
- Enables real estate/buyers agents to see you as a serious property buyer.
- Helps you gain confidence for bidding at auction or negotiating a purchase.
- Quickens the settlement process as the loan is already part of the way approved.
For more information on Pre-approvals please call us on 03 9432 6070 or click on the contact us tab at the top of this screen.