Have you got the right Pre-approval?
Home Loan Pre-approval, Conditional Approval, Approval in Principle, Home Seeker?
What are the differences and which ones are more worthy than others when going to Auction?
Having your pre-approval means bidding with confidence at auction, but have you got the right approval?
When applying for a home loan to prepare yourself for buying that dream home or investment, everyone you talk to is going to tell you to get a pre-approval! But with so many lenders, mortgage brokers and financial advisors out there, have you ever been explained what the difference is when getting your finance ready?
The difference could mean having your finances approved and giving you confidence to bid, or worse case bidding at auction thinking you are home loan finance approved only to find out that you still need to meet a list of requirements or, conditions (that you may not be able to meet!)
Generally speaking, all lenders have a slightly different name for pre-approval and they can mean different things. Some lenders will only give you basic computerised response and list a bunch of conditions in small font. Unless you are a VERY low risk customer, have a very large deposit and stable income you do not want to apply for this! What you want is a fully assessed pre-approval subject to as least conditions as possible.
Some questions to ask your lender or broker when applying for finance prior to making an offer on your property purchase
- Has this application been fully assessed? (this means your payslips, deposit etc has been verified)
- Has a credit check been completed? (to make sure there are no nasty suprises with possible late utility bills)
- If there are any conditions, what are they and can you clear them before going to bid?
- Do you meet the requirements for another lender if worse case and you need to find another bank?
At Loan Market, my clients under go an extra step before a lender pre-approves your loan. We fully assess your income and deposit to make sure you meet all of the banks requirements before submitting to your preferred lender. We then follow through to make sure they fully assess your loan and provide a conditional approval subject only to valuation.
Contact me today for that extra confidence to bid on your next property!