Enter the property market with a pre-approved loan
Buying a home can be a little competitive at times, as it's likely that there are going to be other buyers out there with you.
Especially when interest rates are low and more and more like-minded people are heading out into the market.
So to beat others to the punch, have you thought about getting your home loan pre-approved?
This has many benefits, such as giving you confidence in the market.
Advantages of getting pre-approved
One of the biggest benefits of pre-approving your loan is gaining the peace of mind knowing that your finances are already sorted.
This will allow you to spend time focusing on the more important – and more fun – part of searching for a house.
Buying a house is a very exciting time and every bit of confidence and reassurance that you can get will help make that experience that much better.
At the same time, having your financial side of things sorted out before you enter the market will allow you to set your search parameters.
Having these figures in mind will help stop you from overspending and will guide you into looking at more realistic places and houses.
With a pre-approved loan under your belt, you can benefit in the negotiation phase, or if you are buying a property at auction.
Real estate agents and owners will see that you are serious about buying and that you have the money available to do so. This can give you a heads up over other buyers, and is definitely of use if you're facing fierce competition.
You can also bid at a property auction with ease knowing that you have the deposit ready to go in your back pocket.
The process of getting pre-approved
There are steps that you can take beforehand, such as using an online mortgage calculator, which will help to give you an idea of your borrowing capacity.
The process of getting your loan pre-approved is free and is valid for up to three months. This means that you'll have three months to enjoy finding a property, stress free.
If you find that searching for your dream home is taking a little longer than expected, then don't worry, as you can get this extended for a longer period of time.
Once you have figured out what kind of finance you have available to you, the only hard work left over is finding the home of your dreams.
From there, it's all smooth sailing.Tags: borrowing capacity, home loan pre-approval, how much can I borrow, mortgage broker