Sure house hunting is far more enjoying than searching for the right home loan but many buyers regret not organising a pre-approval. Here are nine reasons why you should spend some time during the week getting a pre-approval so you can attend home opens knowing you’ve done much of the hard work already.
A pre-approval means you’ll know exactly what you can afford so you can narrow your search to houses in a price bracket to match.
You will need to go through the same process of approval whether it’s before or after you’ve found the property of your dreams.
Gaining approval for a mortgage during the Under Offer period can be stressful if your lender doesn’t have the same urgency as you.
A seller is often more motivated to negotiate with a potential buyer that has pre-approval.
Applying for a pre-approval means you start your loan research earlier and gives you time to decide on the type of loan that best suits your circumstances.
If the pre-approval process didn’t go as smoothly as you hoped you have time to look around for a lender that may be better suited to you.
A lender organizing your pre-approval will be able to tell you if there is anything on your credit history that may prevent you from getting a loan.
All lenders require a lot of paperwork. By completing a pre-approval you’ll be able to get together all the pay slips, identification and bank statements, your lender will require to complete the deal.
Knowing they have an organised, motivated buyer a real estate agent will do everything they can to find you the right property.
To get an idea of your borrowing capacity, check out this calculator.
Talk to a broker or your financial institution about the pre-approval process and you’ll be house hunting with confidence.