Home Loan Pre-Approval

Before choosing a home you should have a Pre-Approval

Home loan pre-approval benefits

Before you start looking for a home or investment property, it is always advisable to obtain a Pre-Approval.

There’s nothing quite like shopping for your new home. A home loan pre-approval gives you peace of mind that you are considering properties within your budget.

This doesn’t just save time, it’s also an important financial safeguard. With a home loan pre-approval in place, you can try to avoid the potentially disastrous situation of making an offer – or worse, paying a deposit on a property, only to discover you cannot secure funding to complete the purchase.

Home loan pre-approval is also a handy tool when it comes to price negotiations. Having a home loan pre-approval under your belt is more likely to indicate to selling agents you are a serious contender, and this can add weight to any offers you make.

Reasons to choose a broker to assist with your Pre-Approval

While most people may see most home loans as being similar, there is a large variance in lenders policy requirements. For example, different ways lenders assess income, overtime, contract payments, rental income, depreciation etc. This can all give a different result to your home loan application.

Even with deposits, some lenders require genuine savings. What is genuine savings? Genuine savings would be viewed as 5% on the purchase price in a savings account for 3 months.

Others lenders may accept  good rental history as genuine savings. Other forms of acceptable savings history may be repayments of personal loans, assets in other investments, family loans etc as proof of savings.

Knowing your exact position on these factors enables Your Home Loan Consultant the ability to help you choose the most suitable lender for your individual needs.