Pre-approval
Get pre-approved and in the game from the get-go
Pre-approval, also known as conditional approval or approval in principle, is a preliminary step in the loan application process where a lender assesses your financial situation to determine how much they might be willing to lend you. This process is common when looking to finance a home purchase and can be a valuable tool in the property buying journey.
Key Features:
- Indicative Offer: Pre-approval provides an estimate of your borrowing capacity based on the financial information you provide to the lender.
- Confidence in Property Search: With a pre-approval in hand, you can search for properties with a clearer idea of your budget, allowing you to make offers with greater confidence and be a more attractive buyer.
- Time-Saving: Pre-approval can expedite the formal loan application process once you have found a property, as some of the financial vetting has already been completed.
- Validity Period: Pre-approvals are usually valid for a set period, often around 3 to 6 months, giving you a timeframe to find and secure a property within budget.
Considerations:
- Conditional: Pre-approval is not a guarantee of final loan approval, as it is often subject to certain conditions, such as a satisfactory property valuation and verification of financial information.
- Credit Checks: Pre-approval typically involves a credit check, which can impact your credit score, especially if you make multiple applications within a short period. It’s important to keep this in mind.
- Changes in Circumstances: Any changes to your financial situation or the lender’s criteria can affect the final approval, so it’s important to maintain financial stability during the pre-approval period.
- Market Changes: Interest rates and lending policies can change, potentially impacting your borrowing capacity or the terms of your eventual loan.
Role of a Broker
As a broker, we provide guidance and support tailored to first home buyers, helping to demystify the home-buying process. Our services include:
- Market Knowledge: We offer insights into the latest loan products from a range of lenders, ensuring you’re aware of all available options.
- Personalised Service: By understanding your specific needs and financial capacity, we can identify loan solutions that align with your goals.
- Application Process: We assist in preparing and lodging your loan application, ensuring all necessary documentation is in order and compliance with lender requirements is met.
- Communication: We act as the point of contact between you and lenders, managing negotiations and correspondence to streamline the approval process.
- Ongoing Support: From pre-approval to settlement, we provide continuous assistance, answering questions and offering guidance throughout your finance journey.
If you’re ready to take the next step, please reach out to our team today.
