There are some distinct advantages to getting a home loan pre-approval. Before you start looking at properties for sale in Rockingham, Kwinana, Baldivis and the surrounding area, knowing what you’re approved for and knowing exactly how much you will be able to qualify for a mortgage for can help you narrow or broaden your search. You can also avoid the disappointment of wanting a specific property but then finding out you cannot qualify for it.
The lost time in attempting to secure financing could not only mean the difference between winning and losing a deal; sellers who see a pre-approval could be more inclined to accept your offer over another–even if it’s not the highest offer on the table. Surety can make a huge difference.
How do you ensure that you can get your home loan pre-approved? Here are some things to keep in mind so that you can get it approved and so that you’re sure a pre-approval won’t later be withdrawn and cancelled, leaving you scrambling when you see a property you want or when you’ve agreed to purchase a property without listing a ‘pending finance’ clause.
Know the Conditions of Your Home Loan Pre-Approval
It’s important to understand how to fulfill all the conditions of the pre-approval, which is always conditional based on various requirements by your lender. There are expiry dates. If your situation changes, it could also impact your pre-approval. Not acting quickly enough could also mean that changes in interest rates could impact your situation.
Make Sure Your Paperwork is in Order
Proof of income and other financial conditions are important. Be sure that you have met all the paperwork requirements to ensure your pre-approval won’t be cancelled or delayed.
Make Sure the Property Meets Requirements
Your home loan pre-approval may not apply to certain properties. There may be a need for inspection, for instance, to ensure that the lender feels a specific property is worth the risk. It’s important to weigh things carefully when buying a property that requires a fair amount of upgrades or repairs, for instance.
A Mortgage Broker Can Help
Working with a mortgage broker can help you secure a home loan pre-approval and can also help you ensure that you minimise the chances of that approval being withdrawn.
Leverage the expertise of our team who serves Rockingham, Kwinana, Baldivis and the surrounding area. We have access to 20+ lenders and work with people who require 20% down, as well as those who qualify for 2% down.