Spring is a popular time for the property market, sellers have been preparing their properties ready for sale, and buyers are stepping out in the warmer weather to shop around for their dream home or an investment property.
If you’re thinking of buying a property in the next few months you should consider getting a pre-approved loan.
What is a pre-approved loan?
A ‘Pre-Approval’ is defined as an evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan from the lender, or the maximum amount that the lender would be willing to lend. (source: investopedia)
When you’re ready to start your search we can help you determine the most suitable loan for your individual circumstances AND arrange pre-approval of your loan. Pre-approval indicates to a vendor you are ready to act and puts you in the best negotiating position.
Benefits of a Pre-approval
Having a pre-approval offers the following benefits as a property buyer:
- it means you are organised so when you see a property you love, you are in a position to buy it as you have already done the hard work, thus giving you confidence to go house hunting
- it means that you know how much you can borrow, knowing your borrowing limit means you can get a pre-approval for the maximum loan amount that you can afford (it doesn’t mean you have to use it, but it’s there)
- once you have a pre-approval it is available for 90 days and relatively easy to roll over for another 90 days meaning that if you plan to buy a house anytime soon it will still be handy!
- it could mean the difference between you securing your dream home and missing out on it. In a competitive market, particularly in popular suburbs where you know a property will sell fast, if you have a pre-approval up your sleeve you can act fast and secure your dream home or an investment property
We have a range of finance calculators which allow you to look at different scenarios for loan amounts, repayments, and comparisons, check out our Borrowing Power Calculator or the Loan Comparison Calculator. (Note: Take care if you are using online calculators to provide an indication of your borrowing capacity. This an indication only, not an approval)
Contact us today to organise a pre-approval and kickstart your search for your dream home.