There is nothing worse than committing to a contract on your new home or investment and finding out later that a lender rejected your loan. This could be for a number of reasons, possibly:
- You are unable to service the requested loan amount
- You don’t have enough of a deposit to cover the loan
- Or a number of other reasons
This is why obtaining a pre-approval is a necessity!
It doesn’t cost you a cent, but on the flipside can provide the following:
- You to organise your loan structure beforehand
- Provide the confidence for the amount you can borrow
- Puts you only a step away from an unconditional approval
- Gives you the luxury of time
I always recommend my clients obtain a pre-approval (especially!) before making an offer on a property in writing. As said, it’s a necessity. Not only will it provide you confidence in your buying limit, but it safeguards you – maybe from making a hasty decision on that house you have been eyeing or the mistake of a “too high” bid at auction.
