Pre-approval is a powerful preparatory step in your house hunt, and while not required before you begin your search, it’s something we always recommend to bolster your confidence, and provide you with some level of certainty.
Depending on your financial position, obtaining a loan pre-approval can have a multitude of advantages, positioning you with these invaluable benefits on your property journey:
A targeted search criteria
A pre-approval will provide you with an accurate idea of your borrowing power, so you can ensure no time will be wasted looking at homes that aren’t suitable for you.
By determining what your budget looks like, you’ll be able to tailor your property search and shop within your budget, expending your time only on realistic options.
Strength as a buyer
Vendors and agents are more likely to consider you a serious buyer with pre-approval in hand, knowing you’re prepared to make an offer on a home you know you can afford, and that you’re a step closer to being financially backed by a lender.
This provides you with better bargaining power when the time comes to negotiate on a home you love.
Peace of mind
As a buyer you are typically required to put down a 10% deposit - a significant amount of money for most people, which could be lost if you’re unable to settle.
With the in principle agreement to lend you money that a pre-approval provides, you’ll have some level of certainty you’ll be able to see your purchase through to settlement, providing the confidence many need to take the leap.
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There’s little doubt that obtaining pre-approval is a valuable step in getting you closer to your new family home or investment property.
If you want help connecting with a lender to get pre-approved today, contact us and we’ll put you in touch with the right people.
