What is a pre-approval?
Pre-approval is an indication from a lender that you’re eligible to apply for a home loan up to a certain limit. You’re under no obligation to take the loan, and the lender has no obligation to lend you that amount, but it can show sellers you’re serious about buying and that you’re confident you can afford the property.
With pre-approval, you’ll have a better idea of the price range of the properties you should be looking for and you won’t waste unnecessary time looking for something outside your budget.
Key advantages of getting a pre-approval:
- Setting your optimal budget upfront
- Confidence when negotiating your purchase or going for an auction
- Saving time on the formal loan application after your purchase as some of the work has already been done, so it’s a lot easier and quicker to get the loan application formally approved.
Would like to know more about pre-approval?
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