A loan pre-approval is the foundation of buying a property. One of the most important steps in the process of purchasing property is getting a loan pre-approval before you start seriously shopping. If it’s to occupy or invest, this is first step.
So why obtain a loan pre-approval?
A formal loan pre-approval from a lender provides you with a guideline to what you can spend. This is your maximum lending capacity and should be taken literally. In most cases, we suggest our clients to purchase a property that’s potentially 5% under the loan pre-approved amount.
The loan pre-approval will also provide a guideline as to the expected loan repayments. As a result, you can review your budget and learn if you can afford it in advance.
If you are currently looking to buy, we can help you understand the property prices so you can get the most from your budget.
Does a loan pre-approval cost anything? How long is it good for?
A home loan pre-approval won’t cost you anything but be mindful it usually only remains valid for approximately 3 months. If you don’t locate a property within the 3 months, you can apply again and again. You can get a loan pre-approval from most banks and financiers, but we recommend using a mortgage broker. They have great knowledgeable, unbiased advice and clear understanding of your needs. Their service will simplify the process and allow you to concentrate on buying a property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
December 2018
