If you are in the market to purchase a property, it is a good idea get a pre approval by a lender for your loan for three good reasons.
Going through this process is an important step in evaluating your financial situation.
Talk it over with your broker
It gives you the opportunity to discuss with your broker the loan products available and to address the loan amount and repayments in terms of your affordability. Doing this before you have found a property allows you to be calm and objective in your decision making process.
Know your borrowing power
Knowing how much you can borrow with a pre approval means that you don’t waste time looking at the wrong properties. You will know exactly what price bracket to look in and thus avoid frustration and confusion.
A pre approval gives you the edge
It gives you the edge in a competitive market. If there is competition from other buyers for the property you have found, having your finance in place can put you ahead of the other buyers and improve your negotiating power. The vendor and the vendors agent will take you more seriously and give preference to you and your offer to buy the property.