A home loan pre-approval is an enquiry with a lender about the likelihood of you being lent a sum of money to buy a property. Moreover a finance specialist such as Our Broker can help you find the right lender so you get the best outcome for your property purchase.

Searching for a home to buy without preapproval makes it very difficult for you to know your borrowing capacity. You could be wasting your time looking at properties which are completely out of reach budget wise, or even looking at properties lower than your repayment potential. You could be missing out on your ideal property.

Getting a pre-approval in place should the first step in your journey to buy a home. It will put you on the right track to knowing what you can afford and hence, the suburbs you should be looking at. An Our Broker mortgage professional will confirm your monthly repayments as the pre-approval process also involves looking at your daily living expenses. This step ensures your home loan will be affordable, while taking into account life changes, such as starting a family. And it’s all completed before you lodge a pre-approval application.

Pre-approval can take a couple of weeks to complete, depending on the banks’ workload. To help make the process go smoothly, it is important to have documentation which confirms your identity, income, savings and spending behavior, as well as your previous loan history. Don’t assume that because you have either a high income, or a lot of equity, that the bank will overlook cluttered savings or credit accounts.

A finance specialist from Our Broker will look at details of your savings and earnings, along with a proposed purchase price figure, and even the property you have in mind. They then lodge a pre-approval for the proposed purchase. Once approved your home buying journey can begin.

When the time comes that you have found the right property for you, a broker will instruct the bank to order a valuation to confirm the purchase price and the bank will then issue your approval as unconditional. You then have your new home or investment property secured.

While the cash rate is predicted to increase, the RBA have indicated there will be measured increases and it might not affect your borrowing position. However, with interest rates already being increased by the banks on a daily basis, it’s important to have an up-to-date fully assessed pre-approval in place.

To enquire about getting a pre-approved home loan, contact Our Broker today on 1800 913 677.