Securing pre-approved finance could mean the difference between just finding your dream home and actually being able to buy it.
Paul Eadon from Eadon Home Loans
Imagine after months of scouring the housing market, you finally find your dream home. The estate agent tells you there are two other couples interested in buying the property and it would be wise to lay an offer on the table.
You quickly contact your mortgage broker or lender only to find out the bank won’t lend you the necessary funds and so your dream home starts to slip away from you.
Unfortunately, this occurs all too often for many would-be home buyers. But it is one situation that can be easily avoided with the help of a pre-approved loan.
Pre-approved finance is essentially a guarantee from a lender that they will lend you an agreed sum before you have made a commitment to buying a specific property.
With this guarantee in your pocket, you will have more confidence when the time comes to make an offer.
Already having the cash at your fingertips also gives you significant bargaining power. In most instances, vendors are looking to achieve a swift and simple sale and knowing you can provide a fast settlement may entice them to knock a little off their asking price.
So, how exactly do you obtain pre-approved finance?
It’s actually quite simple. Your selected lender will calculate your borrowing capacity based on a general assessment of your current financial situation and income.
The entire process can be quite quick if your paperwork is in order.
Once confirmed, your pre-approval will last for up to four months, ensuring you have plenty of time to shop for your dream home.
You can read more
about getting ready for pre-approval and tips for a loan interview
All content provided by Eadon Home Loans including financial and home buying tips, are opinions expressed by Eadon Home Loans alone and not that of HomeStart. HomeStart shall not be held responsible or liable for any third party content.