Buying a home can often be a long drawn out process, where you can sometimes come up empty-handed in the end. A pre-approved home loan can help streamline this lengthy process and protect you from losing out on your dream home. A home loan pre-approval is a prior agreement with a lender to lend you a set amount of money to purchase a home before you have decided on or successfully purchased a home. Getting a pre-approval before beginning your house search has a large number of benefits, both practical and psychological, that make it worth your while.
Narrow Your Search
Getting your home loan pre-approved will let you know precisely what you can and can’t afford before you begin looking for a new home. When you get pre-approved, you are given a set amount you can be provided for your home loan. This allows you to refine your search to properties under that amount, saving you a lot of time that you can use for your property search.
Greater Confidence at Auctions
Knowing exactly how much you can afford to bid at an auction gives you a greater sense of security and confidence when making bids. This allows you to capitalise on any opportunities that present themselves at an auction with the peace of mind that you have already been approved.
Attractive to Sellers
The seller of property gets the same peace of mind you get when you have a pre-approval as they know you’ve already been approved for a loan. As a result, you are a much more attractive option than someone who offers a similar amount but still has to get approved for a home loan before they can purchase the home.
Getting a pre-approval for a home loan can take away a lot of the stress and work of buying a new home. It will give you more time to enjoy the excitement of finding a new home and the joy of purchasing one without the added worry of finances.
Our brokers have extensive knowledge of pre-approvals and can help you acquire one for your next property purchase. If you would like to learn more about credit score, please get in touch with us today.