Do I Still Need a Pre-Approval When House Hunting?

Mortgage

A formal pre-approval remains an essential step in purchasing a property. Its significance is in the comfort it provides you and your agent that a lender has given you an approved amount you can borrow after completing a full assessment of your financial situation.

It enables you to discuss with your broker the most suitable lender and facility for your situation, without the pressure of having a property contract on the table.

A pre-approval enables you to take steps to improve your borrowing capacity.

This could include

  • closing credit cards,
  • paying down personal loans or
  • putting guarantor documents in place.

A pre-approval ensures you have all the required documentation to satisfy a loan application.

When purchasing an investment property, it allows you to run scenarios based around rental income and outgoings, ensuring you are looking at a property that exhibits the correct financial characteristics.

Pre-approvals remain a vital step in the process of purchasing property and one we recommend for both first time and seasoned purchasers.

To discuss a pre-approval with a member of our team at Launch Money, contact us on 1300 925 081.

Feb, 12, 2018

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