Regardless of whether you’re looking into low doc home loans or bad credit mortgages, getting in and speaking with an expert early is a great way to get ahead of the curve and ensure you have a fighting chance of securing your dream property.
There are a number of benefits to getting a home loan pre approval. After deciding on the type of home loan you need and discussing your options with financial specialists, taking steps towards solidifying the deal is the next best thing you can do.
What is a home loan pre approval?
Seeking to purchase property means preparing as early as possible in order to make fast moves and secure property ahead of anyone else – especially if you find yourself in an auction situation. Once your finances have been organised, having the home loan pre approved means you can make judgement calls in the heat of the moment, which could be the difference between property success and failure.
Because auctions are such a high intensity environment, many vendors expect the sale to be finalised immediately after the end of the auction. If you’re unable to commit – with all the right paperwork and home loan necessities lined up – you could find yourself being ousted. Furthermore, having a home loan pre approval sends a message of seriousness to the real estate agent selling the property.
Finally, having your home loan pre approved gives you a framework for your spending. In the heat of an auction you may be tempted to bid more than you have access to. Your pre approval can act as a buffer against that, constantly reminding you of your financial limits during this experience.
