August 23, 2013
Richard Windeyer, Newcastle
One of the more exciting decisions you can make is that it is time to start the search for a home. Loan pre approval is key to realising your dreams. I can help guide you. Give me a call today on 0413 245 556 or complete our online form to discuss.
Perhaps you have just gotten married and want to start a family, or you may desire real estate for its investment possibilities. Or maybe you just want to own a home to stop paying rent. Whatever your reason, purchasing a home is a big step which is both thrilling and scary.
So when it comes to determining your borrowing limit, online loan repayment calculators are a handy starting point, however, borrowers-to-be need to understand they provide only an estimate of a person’s borrowing power and ability to repay a loan.
You can then take this to the next level by talking with a professional mortgage broker about which lender will let you borrow what and applying for home loan pre approval. As part of the process we will cover savings requirements, guarantor options.
Home loan pre approval will provide a conditional approval of a loan amount. This helps buyers really hone their property search and shop with confidence when negotiating on a property purchase or bidding at auction.
Genuine loan pre approval follows a similar process to a full loan application whereby borrowers will be assessed on their individual circumstances and needs and are required to verify their 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.
Keep in mind pre approval is usually granted for a period of three to six months and a mortgage broker can help you with the application process. Throughout this period you need to keep your broker aware of any changes in financial circumstances as this may affect the end result – achieving full loan approval and being able to buying a great property.
Advantages of a home loan pre approval. As with any loan decision, it pays to shop around. Some lenders don’t offer home loan pre approval and some don’t go to the extent of conducting a thorough individual assessment meaning you could get a different loan limit upon applying for unconditional approval and, like those without pre-approval, you could miss out on a property if it’s above your loan limit.
If you’re looking to buy then consider getting yourself organised with loan pre approval. Having your finances in order before you go house hunting can save you a lot of time and stress if you happen to find the right property.
Top five benefits of a home loan pre approval are that it
- It prompts you to begin thoroughly exploring your loan options at the beginning of the property purchase process.
- Saves time (and lessens possible disappointment) by concentrating the property search in a feasible 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.