Get the Green Light – Get Pre-Approved!

What’s Pre-Approval?

– Sometimes referred to as an approval-in-principle, pre-approval is a general indication of how much you are able to borrow based on information you provide to a lender.
Although subject to terms and conditions, a pre-approval basically gives you the green light on your home loan even if you have not decided on a property
The amount of the pre-approval is usually determined by your ability to meet the loan repayments. Most pre-approvals are valid for up to three months.
There are many different types of pre-approval but if you are looking to go into negotiations with a vendor with some certainly behind you, an unconditional pre-approval is the best way to go. It will typically cost you a little extra in processing and assessment fees, but an unconditional pre-approval will place you in a stronger negotiating position with most sellers in the market.
Be careful with the term unconditional as it means that all of the lender’s requirements to assess the application have been satisfied (including valuations, if applicable). However there may still be some other lender conditions that apply.

How do you get pre-approval?

– To kick start the pre-approval you will need to provide us with some key documents. These will include proof of your income – such as a letter from your employer or copies of your latest payslips – proof of identity, and details of any assets you own. Other paperwork might include details of any existing loan commitments and limits on credit cards. Once your financial status has been given the tick of approval by the lender, you will receive a pre-approval notification that will see you on your way to home ownership in little or no time at all.

Why Obtain Pre-approval

• Peace of mind –A pre-approval gives you the confidence of knowing how much you can borrow when buying a property
• Jump the queue - Having your home loan pre-approved enables you to seize the opportunity and act quickly when you find a property you want.
• Stronger bargaining power – A pre-approval can sometimes help you negotiate a better price with the seller, especially if there are a few stringent conditions upon the sale.
• Ability to bid at auctions – Under the conditions of a cash contract a pre-approval allows you to bid at auctions for the property of your choice.