- Posted by: Nerida Punter
- Categories: All, First Home Buyers, Helpful Resources, Home Loan
A pre-approval is when a lender approves you for a home loan before you actually decide on a house to buy. It’s essentially peace of mind that you are approved for a home loan if you decide to apply for it. By being proactive with a pre-approval you reap a host of benefits that can be useful when buying a home.
Peace of mind
Buying a home can be a stressful and complicated process. By obtaining a pre-approval you can rest easy knowing that once you decide on a home it can be yours (in the appropriate price bracket).
Focus on the things that matter
Getting a pre-approval will allow you to narrow down the home that fits within your budget. Knowing what you can borrow allows you to cut out the homes you can’t afford and spend more time looking at the homes you can.
Increased bargaining power
House sellers will be more willing to accept your offer if they know you are pre-approved. This gives your offer more credibility and the potential to negotiate a lower price than is listed. If the choice comes down to your offer and another at the same price, the seller will likely choose yours knowing it comes with a pre-approval.
Ready at Auction
It’s easy to get lost in the heat of battle when you’re at an auction, fighting for the house of your dreams. A pre-approval gives you the knowledge you need, to protect yourself from bidding more than you can afford. You’ll know the limits of your loan, and the limits of what you can and can’t afford so you protect yourself from any rash decisions.
Buying a home is a big decision that requires many hours of careful consideration and countless more searching for homes. Make the job of buying a home easier by obtaining a pre-approval.
If you would like to get a pre-approval in place, contact us at The Savings Centre, 1300 55 61 10.