Going through the home loan pre approval process is an important step in evaluating your financial situation, if you are in the market to purchase a property, it is a good idea to be pre-approved by a lender for your mortgage for four good reasons.
Speed up the process
By getting a home loan pre-approval for your mortgage is simply the fact that once your offer is accepted you won’t have to rush around trying to organize everything to arrange your finance, speeding up the process and making it much smoother.
Selecting the right loan
It gives you the opportunity to discuss with your mortgage 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 stay calm and objective in your decision-making process.
You have the advantage
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.
Know your borrowing capacity
Knowing how much you can borrow 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.
How to get your home loan pre approval quickly
For serious buyers, using a mortgage broker to apply for a home loan pre approval once you are ready to start looking for a property is one of the first steps in the home buying process, their knowledge of different lenders and their lending criteria can help you to find the loan best suited to you. If you are unsure of any aspect of the finance process, your mortgage broker is always available to aid you from the pre-approval stage to settlement.