Sure house hunting is far more enjoying than searching for the right home loan but many buyers regret not organising a pre-approval. Here are nine reasons why you should spend some time during the week getting a pre-approval so you can attend home opens knowing you’ve done much of the hard work already.
Know your budget.
A pre-approval means you’ll know exactly what you can afford so you can narrow your search to houses in a price bracket to match.
There’s not a lot of extra work involved.
You will need to go through the same process of approval whether it’s before or after you’ve found the property of your dreams.
Take away the stress.
Gaining approval for a mortgage during the Under Offer period can be stressful if your lender doesn’t have the same urgency as you.
A seller is often more motivated to negotiate with a potential buyer that has pre-approval.
Know your loan types.
Applying for a pre-approval means you start your loan research earlier and gives you time to decide on the type of loan that best suits your circumstances.
Test your Lender.
If the pre-approval process didn’t go as smoothly as you hoped you have time to look around for a lender that may be better suited to you.
Check your credit history early.
A lender organizing your pre-approval will be able to tell you if there is anything on your credit history that may prevent you from getting a loan.
Paperwork in order.
All lenders require a lot of paperwork. By completing a pre-approval you’ll be able to get together all the pay slips, identification and bank statements, your lender will require to complete the deal.
Agents love pre-approved buyers!
Knowing they have an organised, motivated buyer a real estate agent will do everything they can to find you the right property.
To get an idea of your borrowing capacity, check out our calculator. Simply enter the amount you would like to borrow followed by your income and rough expenses and the calculator will indicate whether or not you would be successful in obtaining finance. While you are there, try our other two powerful calculators for and buying/selling costs.
Talk to a broker or your financial institution about the pre-approval process and you’ll be house hunting with confidence.