A lot of property buyers start looking for property without arranging there finance and confirming there borrowing capacity. Getting a pre-approval gives you the confidence of knowing much you can borrow helping you set a budget for your property purchase and property goals.
Pre-approvals are free and valid for up to three months and really speeds up the process once you make your purchase.
Here are 5 benefits of getting a home loan pre-approval.
1. Shopping In A Price Range That Fits Your Approved Budget
By getting a pre-approval for a home loan it gives you the ability to establish clear priorities and goals for purchases. You can target properties that fit both your price ranges and needs. This eliminates a lot of unnecessary work and it helps buyers establish realistic expectations on the price range from early on.
2. Real Estate Agents Will Know That You Are Serious
Having your pre-approval in place lets an agent know you are prepared and serious and in a position to buy. Having pre-approval will allow you to be pro-active and confident in putting forward offers knowing it is within your budget.
3. Getting An Early Start On Your Loan Search
Applying for a pre-approval will also give you the prime opportunity to learn more about the different funding options you are qualified for. Your mortgage broker will help you explore these options and choose the best fit for you.
4. Enter Into Negotiations Confidently
Whether you are buying at an auction or through a private sale by having pre-approval in place you can be confident when making an offer that you aren’t wasting everyone’s time including your own time.
5. Wrap Things Up Faster
One of the best reasons for getting a pre-approval for your home loan is simply the fact that once your offer is accepted you won’t have to rush around trying to organize everything to arrange your finance. This will assist speeding up the process and making it much smoother.
For serious buyers, using a mortgage broker to apply for a home loan pre-approval once you are ready to start looking for a property is one of the first steps in the home buying process.