Home Loan Pre Approval
Home loan pre-approval allows you to bid at auctions with confidence and shop for your new home with peace of mind.
The importance of Home Loan Pre-Approval.
The search for the ideal home may be a long and difficult process. But what if you got lucky and stumbled upon the perfect property – in your ideal location – with an auction this weekend? If you hadn’t taken some steps to sort out your finances in advance, you might be struggling to get things together in time to snap up a great buy.
That’s why home loan pre-approval is the smart first move even if you’re just starting the process of buying a home. It’s a free service that allows a bank or lender to determine how much they would be prepared to lend you, based on what you can afford to repay. With pre-approval you can be prepared in advance to negotiate confidently on a property you find, rather than let somebody else snap it up before you.
Pre-approval clarifies your search
Without some type of pre-approval, you won’t have an accurate picture of your likely borrowing capacity, so you may be wasting time looking at properties outside your actual affordability price range. A pre-approval clarifies your realistic purchasing power, so you can better focus your search efforts.
The difference between ‘Conditional’ and ‘formal’ home loan pre-approval
A conditional pre-approval is a faster and simpler process to reasonably assess your expected borrowing capacity. Whilst it offers no guarantee of a loan amount, it’s a helpful guideline from a lender as to how much they are likely lend you subject to more complete documentation . This might be enough information to start your property search, but formal pre-approval goes further.
A formal pre-approval requires much of the same information as a full loan application. Details of your assets and liabilities, with documents such as pay-slips and bank statements give the lender your full financial circumstances, enabling them to make a firm, written commitment to lend up to your pre-approved limit. Whether you actually end up borrowing that full limit is up to you and you may well choose to borrow less, depending on your needs and financial goals.
Pre-approval speeds up the loan process
Once you’ve found and bought the right property, you’ll be busy enough planning to move, to redecorate, or to celebrate! If you’ve done the formal pre-approval, setting up the loan itself is far quicker and easier, so you’re free to concentrate on everything else at this exciting time!
Home loan pre-approval is free
It costs nothing to obtain a pre-approval, and you are not under any obligation to take up a loan or any specific amount with any lender. Most pre-approvals are valid for between three and six months, after which you’ll need to re-apply. This is to ensure any changes in your financial position are considered in the pre-approval limit.
Where do I go for Home-loan pre-approval?
Just where you go for pre-approval will depend on the type of loan and features you might need. At we can help you clarify your needs and determine what type of loan from which of our selected lenders will best suit your individual circumstances, and like a pre-approval our service is completely free.
My wife and I recently purchased land and built a new home. Kathy Dundas from No Fuss Home Loans was our Mortgage Broker through this process. Kathy went over and above our expectations in helping us through this process. Apart from the standard paper work Kathy spent numerous hours going through our options and running through different scenarios to ensure we were choosing a home loan that best suited our needs. As first time builders it was a little overwhelming but Kathy made sure we had all basis covered and always responded to our calls and emails in a timely fashion and courteous manner. Kathy maybe herself available coming out to our home and even spent time helping us through some urgent matters whilst she was away on a Christmas holiday break which we are truly grateful for. Kathy provides exceptional customer service and she really looks after her clients and I would not hesitate in recommending her services to anyone in need of a good mortgage broker.Daniel Malec
Kathy’s desire to achieve the best possible outcome for her clients and her human approach are some of the key attributes that make the experience of working with her, during some of the uncharted if not challenging times, easy and certain. That’s why my wife and I have sought Kathy’s advice and assistance on a number of occasions and are happy to recommend her services in the future.Maxim Bachimov - Toorak