Pre-Approval: The Exciting 1st Step to Your Dream Home

A Comprehensive Guide to Mortgage Pre-Approval

The ideal property can become available at any time. For this reason, having your finances well-organised is essential. Securing pre-approval for a home loan empowers you to act swiftly and decisively when the right opportunity arises.

What is Pre-Approval?

Pre-approval indicates how much you can borrow and involves completing the loan application before selecting a specific property. The process consists of three key elements: verification of income, a thorough credit assessment and confirmation of funds. Confirmation of funds may come from various sources, including personal savings, equity in another property, support from a guarantor, or government grants.

Why is Pre-Approval Important?

While it’s not mandatory, it offers significant advantages in the home-buying process. It allows you to search for properties within your financial means confidently. Additionally, obtaining pre-approval helps you avoid potential delays that could lead to missing out since processing times for loan applications differ between lenders. Furthermore, having pre-approval signals to sellers and real estate agents that you are a serious buyer, as it enhances your credibility and improves your chances of securing the property you desire.

Duration and Conditions

Pre-approval generally remains valid for 90 days. If your house hunt extends beyond this timeframe, securing an extension is typically straightforward. However, it is crucial to remember that any significant changes to your financial circumstances during this period, including changes in income, debt levels, or credit score, may impact your pre-approval status.

In summary, obtaining pre-approval is a proactive step that equips you with the necessary knowledge and confidence to navigate the property market effectively. It allows you to be ready to seize opportunities as they arise while adding a layer of security to your home-buying experience.

If you would like to know more our trusted partners at Property Hub Finance are here to help. You can book an appointment here to speak with a Broker.

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Armstrong Real Estate has made every attempt to ensure the accuracy of information presented in this article. However, its content is general in nature and does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. It is not intended to constitute tax or financial advice, whether general or personal, nor is it intended to imply any recommendation or opinion about a financial product. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.