Home Loan Pre Approval and Why You Should Get it
Home loan pre approval is an important step on the way to any property purchase.
Whether you are buying your first home, upgrading to a second or third, or investing in real estate, start your journey the right way – with the confidence and certainty of a pre approved loan.
Know what you can afford
A pre approved home loan will come with certain conditions. The most important for your search is a limit on the amount you can spend on buying a property.
Don't think of it as a restriction, however – think of it as your guide.
Before you got approval you may have been uncertain of what you could afford. Now, with a pre approved mortgage, you'll know exactly how much money you have to work with.
This can give a much needed focus to your property hunt. You needn't worry about wasting your time looking at properties you may later find out you can't secure finance for.
Instead, with the pre approval already in place, you'll be able to be more efficient and concentrate on places that are within your means.
Be prepared to act
There is no better preparation for the act of making an offer on a house, unit or apartment than to have your home loan pre approved.
If you wish to bid at an auction then pre approval is mandatory. Without it, you won't be able to take part.
Having things sorted ahead of time also means you can act quickly when dealing with all types of property sale. And speed can be very important indeed.
If you are in a situation where your offer is up against other buyers who haven't arranged their finance beforehand, this could be to your advantage.
At the very least, sellers will see that you are serious about buying and that you have taken the effort to gain conditional approval from a lender.
This could give you more power to negotiate with property sellers. You may end up with a better deal as a result.
Once a price is agreed, final unconditional approval will come through faster. That means less waiting and anxiety.
Don't pay a cent
You might expect to have to pay for all of these benefits. Luckily, you don't, because home loan pre approval is free.
What's more, you don't have to follow through with the loan either.
A pre approved loan is valid for up to three months. If you don't manage to find the right place in that time, all you need to do is re-apply again once the period is up.
Speak to a mortgage broker about getting formal home loan pre approval for your investment property purchase.