Are you ready to buy?
What is a home loan pre-approval?
A home loan pre-approval takes the uncertainty out of searching for a property by providing you with an excellent guide to how much you can afford to spend and allowing you to negotiate strongly on price.
Most banks and lenders offer home loan pre-approval, which generally lasts up to 3 months.
The right pre-approval
There are several different types of home loan pre-approval; the most accurate one is a written one. This may cost some money in processing fees but is the most secure indication of how much you can borrow.
Even with a written pre-approval, there may still be some conditions which will need to be met, including:
- Finding the right property
- Obtaining a registered valuation
- Mortgage Insurance acceptance (if applicable)
It is recommended you apply for home loan pre-approval for your maximum borrowing capacity, even if you do not intend to use it. This is particularly useful when purchasing at auction.
Once you have found the right property, you will need to advise your broker and provide a copy of the contract for sale to the lender to initiate the final stages of the approval process.
It is important to remember that a home loan pre-approval is not yet an unconditional approval. Full approval of the loan can take as little as an hour, or it may take several days should a valuation be necessary.
I work closely with Joseph Faddoul of Loan Market. For more information on home loan pre-approval, and a home oan that is in your best interest, complete the form below and Joseph will contact you shortly (no obligation or cost whatsoever)