Pre-approve your loan
Most people start the process of purchasing property with thoughts! They have a thought that settles and that starts them off being a little more interested in the property pages of a local newspaper or a property advert grabs their attention whereas previously it wouldn’t have. The process however can escalate pretty quickly from there and before they know it they have made an offer on a property that excites them. Then they look for finance and start bumping into problems.
The better way to start the process of acquiring property is to follow up that thought of a new home or investment with a call to your experienced and trustworthy mortgage broker to spend some time discussing your idea with an unemotional third party. That way you can get your idea sanity checked and at the same time work out the financial implications and possibilities. You will find that a good mortgage broker is most certainly worth his or her salt! Besides the fact that their service is 100% free they are very interested in the financial well being of their clients because that is a reflection of the value of their service. Their advice goes well beyond the tangible service proposition of helping you sort through all the different loan options out there. The fact that they have been through the process of acquiring property hundreds of times vicariously through their clients, means that they have a wealth of knowledge to contribute to you in your journey of property acquisition. That knowledge will either save you thousands or save you from making bad decisions or alternatively, boost your confidence to make brave decisions that will propel your financial success in property. This knowledge is the true backbone of the value of a good mortgage broker and in my opinion, is the real reason for the massive increase in the mortgage broking industry to the point where now way more than 50% of Australians use their services.
What is a Pre-Approval?
A pre-approved home loan is simply a loan that a lender has approved prior to the acquisition of property, for the intended purchase of property. The pre-approval or loan offer generally lasts between 3 – 6 months depending on the lender. The lenders offer however is not an unconditional commitment from the lender but rather an assessment based on your current financial circumstances and their willingness to lend you a certain sum of money given those circumstances don’t change negatively over the 3 – 6 months time frame of the pre-approval.
Advantages of a pre-approval
- It’s FREE
- It’s valid for 3 to 6 months, depending on the lender.
- It gives you a definite maximum purchase price.
- It eliminates the possibility of the disappointment of having your loan declined, which will also negatively impact your credit file.
- It potentially SAVES YOU BIG DOLLARS by giving you confidence in your house hunting which translates into better price bargaining with the agent.
- It allows you to move quickly when you find that gem of a house which will improve your chances of getting the home.
- It allows you confidence to bid at auctions.
- Estate agents definitely have the ability to sway their vendors on which offer to accept and will tell their vendor which offer looks a certainty on finance. Unconditional offers are certainly worth more than conditional ones!
- It shows your estate agent that you are serious about buying a home. Some agents won’t spend their time showing you homes in-case you don’t come through with the financing.
- Contractual finance clause pressures are greatly reduced when the lender has already seen your application. This ensures that you don’t lose the home by breaching the finance due date.
- You can focus on house hunting rather than having to worry about finance at the same time.
If you have had any thoughts of possibly buying property then you are now in the market for a home loan pre-approval and we can help.
Speak to a broker today
Having a Multi Choice broker negotiate finance on your behalf is the smart way to go as we look to save you time, stress and money.Book a free appointment