What is Pre-Approval and Do I Need It?
What is Pre-Approval?
A loan pre-approval provides insight into the amount a lender is willing to let you borrow based on factors such as your income, expenses, and overall financial situation. It’s important to note that while pre-approval is not an absolute guarantee, it offers a clear budget to work with during your home search.
Reasons to Get Pre-Approval:
Focus on Affordable Properties:
By establishing a limit before you start your property search, you can concentrate on homes that are within your known price range.
Proves you are a Serious Buyer to Agents
Pre-approval signals to real estate agents and sellers that you are a serious buyer with your finances in order.
Negotiating Power:
With pre-approval, you may have greater negotiating power, potentially securing a better deal on your dream home.
Quick Action:
Pre-approval streamlines the purchase process by having your financial situation assessed in advance, allowing for quicker transactions.
Confident Auction Bidding:
Pre-approval enables confident bidding at auctions as you will come in knowing your exact price limit.
Cost-Free Assurance:
Obtaining pre-approval from a mortgage broker is completely free!
Financial Safeguard:
Pre-approval helps you avoid costly mistakes, ensuring you can secure finance before committing to a purchase.
Flexibility and No Obligation:
While a valuable step, pre-approval doesn’t lock you into a loan. It’s generally valid for a set period, and you’re under no obligation to proceed.
Confidence in Your Home Buying Journey:
Pre-approval brings confidence to your home buying journey, ensuring you start on the right foot with a clear understanding of your financial capabilities.
We are here to help
Navigating the complexities of a home loan is made easier with the assistance of mortgage brokers. They can guide you through the pre-approval process and help you explore various lenders, interest rates, and fees to find a loan that suits your needs.
Aside from pre-approval, your mortgage broker will assist you in finalising your application and requesting formal approval once you’ve found your dream home.
Call us on 02 6162 2740 or email us at enquiries@dominionfinance.com.au to make an appointment today.
