realestate.com.au Home Loans Pre-Approval
Home loan pre-approval is available from most lenders and is generally valid for three months. It is something you should definitely get if you possibly can, no matter how much you are intending to borrow because it allows you to pretty much act as if you have cash. A pre-approval application is assessed in exactly the same way as a full approval. The only difference is that the property you will purchase has not yet been determined.
4 Quick Steps to Home Loan Pre-Approval
If you want to be 100% confident, get your mortgage broker to help you with your home loan pre-approval. Call us on 13 LOAN (or +61 2 9249 3739 for international callers) or email usthe form below and we will return your contact within 2 business hours. A good mortgage broker will also help you to understand how the process works, includingany terms or conditions that will need to be met.
Make Sure You Get Formal Unconditional Pre-Approval
Many home loan 'pre-approvals' are only indications. If you want something you can rely on, you must get unconditional pre-approval. As a rule of thumb, it will typically cost you some money in processing and assessment fees. It is however the only way to get the pre-approval you need to negotiate with confidence or bid at auction under almost the same conditions as a cash contract.
When you get home loan pre-approval, if you can, consider applying for more funds than you need. You don't need to use the whole amount you are approved for, but if you find a property that is priced at a higher amount, you are still free to negotiate. It is advisable to talk to your local mortgage broker to determine your borrowing capacity before getting pre-approval.
Be Aware of Pre-Approval Conditions
All Home Loan Pre-Approvals are subject to the conditions under which the approval is granted. As a guide, these generally include:
- finding a suitable property
- receipt of a registered valuation
- mortgage insurance acceptance (if applicable)
After You Found Your Property
Once you have found your property, you will need to advise your mortgage broker and provide a copy of the contract of sale. Full approval of your loan can take as little as an hour or it may take a few days if valuations are required.
More information or help
For confidential assistance with your home loan or to talk to your local mortgage broker, call us at any time on 13 LOAN or call our direct line on +61 2 9249 3739.
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