Your home loan pre-approval
Purchasing a home is an exciting time and certainly one you’d like to make with confidence. Whether you’re just starting out with your first property, or sinking your teeth into an investment, obtaining your home loan pre-approval will give you both peace of mind and allow you to focus on the exciting part of searching for home and trying to obtain it for the right price.
There are a few lenders who provide home loan pre-approval, and whilst it gives you an approximate guide of how much you can afford to borrow, it is still conditional on a lender approving the home you purchase, a satisfactory property valuation, and Lenders Mortgage Insurance approval (if applicable).
Real Estate agents and vendors may look favourably upon your pre-approval when placing your offer, as it’s a great first step in gaining full home loan finance approval, and reflects your commitment to purchasing your potential home.
Working closely with your Bernie Lewis Home Loans Finance Broker is the best way to ensure your home loan pre-approval is accurate with a high chance of full approval. This will give you confidence in your offer or bid at auction, with your best foot already put forward to your lender.
So what does a Pre-Approval involve?
- Establishing your home loan needs and requirements
- Providing evidence of your income, savings, debts and expenses
- Assessment of your borrowing capacity and purchase scenarios
- Choosing a lender and product suitable for your needs and requirements
- Lodgement of your application with the lender that you’ve chosen
- The lender’s assessment of your application and pre-approval decision
Happy house hunting, but remember…your pre-approval is based on the information you’ve provided on your pre-approval home loan application, so it’s important to note that any changes to these circumstances could impact on your pre-approval being formally approved once you’ve found the home you want to purchase. For example, you should be letting your broker know if you have changed jobs, taken out new credit, welcomed a child, or commenced Government financed study.
Your property research
A property might seem like it ticks all the boxes at face value, but be sure to do your research first, just in case there are any issues that you may need to be aware of before putting in an offer. A good home loan broker will aid you in the process of figuring out whether or not a property suits your needs and objectives.
- Look at the sales history of the property
- Compare against properties that have recently sold or are listed for sale
- Discover what is nearby in the neighbourhood, such as public transport, schools, shops, food & beveridge venues, gyms, parks and playgrounds
- Consider the demographics within the area and consider how they may affect your lifestlye and the value of the home in the future
- Attend an inspection, trust your gut and ask questions
A little extra research will help you consider whether the property is priced right, or whether it has been over-valued. This may help with your negotiation to buy.
Bernie Lewis Home Loans can help you access information from a whole host of sources if you want to delve a little deeper.
We can provide reports on specific properties and suburbs, including how close by local services are and whether facilities such as public transport are in good supply.
One of the best pieces of advice when choosing a property to buy in Australia is to go with your gut – if you believe an offer is too good to be true, it could well be!
Call 8300 8300 or email [email protected] to chat about your property goals.
