How Do I Pre-Approve My Home Loan?

October 14, 2015 - Posted in First Home Buyers, Home Loans

Do you get a headache every time you even think about buying your first home? For many first homebuyers, finding the perfect property for a good start to family life can seem impossible. Between the budgeting, the borrowing and the big banks, it’s easy to feel like no one is on your side. However, the truth is there are processes and experts to help you on this journey – you just need to know where to look. One of the best assets to have on your side is a pre-approved mortgage loan. A pre-approved home loan can give you the security, the clarity and the confidence you need to buy your first home, once you’ve tracked it down of course. But what is a pre-approved loan, how do you secure it and why should you bother with it in the first place? To answer all those questions and more, we’ve compiled a guide to pre-approval from the home loan experts. 

What You Need to Know about Pre-Approved Home Loans

There’s a lot to learn when it comes to buying a house so it’s easy to overlook some of the finer details. A home-loan pre-approval could work wonders for you, so don’t let it become another piece of jargon that you simply ignore. A pre-approved loan is basically a lender approving your loan before you even make an offer. Pre-approved loans are 100% cost and obligation free and they’re usually valid for 3 months, so there’s no reason not to apply.

Experience the Benefits of Pre-Approval

If you can get your home loan pre-approved, you’re putting yourself ahead of the pack in the hunt for a home. Home loan pre-approval can empower you to make decisions with confidence and tells the seller that you mean business. The benefits of a pre-approved loan include:

  • Knowing how much you can spend (allowing you to save too!)
  • The confidence of knowing you can buy at auctions
  • Increased negotiating power with sellers
  • Credibility – your sale won’t fall through
  • Quicker property settlement

How Do I Know If I Qualify?

Generally when you’re applying for a pre-approved loan, you’ll need to provide your lender with some documentation. Information such as proof of deposit and income, and a record of your expenses should suffice for a lender to determine if you are eligible for pre-approval. Gathering this information together can be a daunting task in itself, but thankfully there are professionals who can provide home loan advice and guide you through this process. A friendly mortgage broker can tell you if you prequalify for a loan and find the right result for you.

Choosing a Mortgage Broker

If you’re a first homebuyer, a mortgage broker could be your greatest weapon. Not only are they a knowledgeable resource, but a broker is also an independent party, free from one-sidedness. When it comes to a pre-approved home loan, your broker won’t just tell you whether you’re eligible, good ones will do all the research to find you the most suitable loan with the best lender.

If you’re ready to climb the property ladder in Brisbane or around Queensland, contact your friendly broker at Multi-Choice Home Loans. Our team will find out if you’re eligible for a pre-approved loan and our free service will remove the stress from the home buying process, moving you into your new home faster.