Mortgage Minute: How pre-approvals work
In this Mortgage Minute we chat about pre approvals and why are they helpful.
A pre-approval is a conditional agreement from the bank to lend you an agreed amount on a property purchase.
This allows you to look for your new home or investment property with confidence, knowing how much you can borrow and move with speed when you find it.
Take note, 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 your contract.
A pre-approval for a property with less than 20% deposit can be very difficult due to the limited funding cap in place by RBNZ.
Luckily 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 even in some instances if you have less than 20%, so give us buzz on 441 1307 and book a free appointment.