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.