The benefits of loan pre-approval
Finding the right property can be a long process, and when you do find the one, it is important to be in a position to purchase immediately to avoid the disappointment of missing out because of timing. When you are looking to buy a new home or an investment property it is also advantageous to know how much you have to spend and getting pre-approval will help set your limit and assist when negotiating on the price. It also means you can bid with confidence at an auction.
There are many strategies to negotiating a lower price with a vendor. One of the most powerful is to have your finance pre-approved. A vendor is far more likely to accept a lower offer from a buyer with their finance already approved than from someone who has a finance clause in the contract, especially if that seller has already had a couple of contracts fall over due to failed finance.
Advantages of Pre-Approvals
- No Cost
- Finance is subject only to the valuation of the property being purchased.
- Valid for around 3 months (easily extended)
- Enables you to go shopping for a home with confidence.
- Final unconditional finance approval is much faster as the only thing that needs to be done is to value your property.
- Allows you to move quickly if you come across the right property.
How to Get a Pre-Approval
Just make a time to
meet with one of our mortgage planners we’ll go through the details find the right loan to suit your needs. Once your paperwork is in place, a pre-approval takes around 4-5 working days, and then you can go shopping for a home with confidence!