What is Home Loan Pre-approval
A home loan pre approval shows clear guidelines provided by your banks, on how much money you have to work with, helping you narrow your property search and put you in a strong position to negotiate with a builders or bid at auction.
A home loan pre approval is similar to full finance approval except that the property you intend to purchase has not yet been determined. Some conditions usually need to be met before full finance approval will be granted.
Why do you need pre-approved home loans ? The Benefits
- Pre approval of home loan can give you a good idea of the type of mortgage you will be qualified for and the price range you can afford.
- Provides proof to the real estate agent, sellers and builders that you are conditionally approved for a specific loan amount.
- When you have found the right property you can focus on the purchase process rather than having to sort out finance at the same time.
- Sometimes, sellers will accept an offer below listed price and take a property off the market because they know the buyer is serious.
- Is offered by most lenders at no cost Getting your loan pre-approved can make sense from both a peace of mind and time management point of view but it is important to speak to your broker or lender to work out the best option for you.