Mortgage Minute: What is a pre-approval and why is it helpful?
In this Mortgage Minute we chat about pre-approvals and why they are 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.
Banks have lending criteria they apply, to assess if you qualify for a pre-approval and it can vary between lenders.
Pre-approvals also don’t last forever and if your position changes significantly between when you were first approved and when we need to roll over your pre approval, you might need to complete an entirely new application.
Don’t worry though Loan Market can help you with your pre-approval and ensure it stays current, so give us buzz on 471 8825 and book a free appointment.