What is a Pre-Approval

A pre-approval is essentially a letter from a bank or lender stating that you meet their lending credit policy and can give you solid guides regarding how much money you can borrow. As your mortgage broker, we would sit down and get basic details regarding your income, and assets you may have and any liabilities (car loans, personal loans, credit cards etc). We will then compare loans available from all our lenders to see how much money a lender may be able to offer you to buy your dream property. We’ll help you find the most suitable loan and make an application to a lender seeking preapproval for funds to be borrowed, providing that you meet the lenders credit policy.

A pre-approval gives you peace of mind when you’re looking to obtain finance to purchase any property, whether it be for your first home or an Investment property.

There are many different reasons people will choose to get a pre-approval. A pre-approval is invaluable if you are thinking of going bidding at auction as it can provide you with boundaries on your upper limit. A preapproval for a home loan can also give you peace of mind to know you will get the funds required and be successful in buying the property you want.

A pre-approval is normally valid for 3-6 months, varying from Lender to Lender but it’s important to remember that it is only valid whilst your circumstances remain as they were when we first submitted your application. Interestingly different banks go to different levels of detail when providing you with a preapproval. This means that some lenders may grant a preapproval without validating or confirming all your personal finances – this means that some preapprovals may be more valid in confirming your borrowing capacity than others.

If you want to make sure you’ve got a clear idea of how much you can borrow you should give us a call right now on 03 5331 3632 so we can crunch the numbers. If you’re thinking of bidding at auction for your dream home, lock in your budget and bid with confidence with a preapproval. Email us at Stephen.Britton@mortgagechoice.com.au, or request a call back by filling in the form on the right hand side and let us know the best time to give you a ring.

 

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