Mortgage Minute: Why a pre-approval is helpful
A pre-approval is a conditional agreement from the bank to lend you an agreed amount on a property purchase, prior to you finding the home you want to buy.
This allows you to look for your new home or investment property with confidence, knowing exactly how much you can borrow.
It can also be important in securing the property when you do find it, allowing you to move with speed which can be crucial.
Always note however, the ‘pre-approval’ is the bank supporting the lending amount but until the property itself is approved you must always have a finance clause in any contract until it’s accepted.
Pre-approvals for a property with less than 20% deposit are limited due to the funding cap put in place by the Reserve Bank.
As new build and turnkey properties are exempt from the RBNZ rules we can always seek pre-approvals with less than 20%
Don’t worry though Loan Market can help you with your pre approval often with less than 20% deposit, so give us buzz on 441 1307 and book a free appointment.