How To Get Pre-Approved For A Home Loan
TIP Pre-Approval also known as a conditional approval or a preliminary approval, is an offer by the lender to lend you up to a certain amount of money. Depending on the lender, a pre-approval is valid from 3 to 4 months. By getting pre-approved, you know how much a lender will lend you and the value of the property you can purchase.
For example, a pre-approval for a $400,000 loan will be linked to a property value of $500,000 (using the 20% as the base for the deposit). In this example you can feel confident that the lender will lend you the $400,000 providing the valuation for the property you are purchasing comes under $500,000.
Achieving a pre-approval requires almost a full loan application. The lender will assess everything up front as part of the pre-approval process, which often makes the final approval phase less time consuming and less complicated.
There are several reasons why you should consider getting pre-approved for a loan. Consider that you are selling a house and your agent presents you 2 offers for the same price. One is a cash buyer whilst the second needs loan approval. Which buyer are you likely to accept? Most likely you will take the cash buyer as it provides more reassurance that your sale will go ahead once the contract is signed. A pre-approval is similar, as it provides a certain amount of certainty for the seller. Therefore, property agents also prefer buyers with pre-approved lending as it provides more certainty to the sale. It’s fair to say that a pre-approval may assist you in securing a property over another potential buyer without pre-approval.
TIP Depending on the property market, a pre-approval is likely to give you additional negotiating power that can influence the buying price of the property. This is certainly more likely when the properties market is slow and there are more sellers than buyers.
Having a pre-approved loan in place is also preferred if you are bidding at an auction where the last man standing buys the property unconditionally. In this instance always keep the maximum property value in mind and the likelihood that the valuation needs to match the bidding price. If in doubt, seek advice from your Mortgage Broker
Pre-approval also provides an element of comfort to the seller, particularly if they are in buying another property and will be relying on your purchase to settle their own sale. In this situation, a seller may prioritise your offer higher and, be more negotiable with their price, particularly if they have already found their next dream property.
Why Choose Brisbane Home Loans
You're In Good Hands
Brisbane Home Loans is all about good old fashioned personal service without exception.
We Find The Right Deal For You
We take the time to listen to your needs and then search the market for the best products that satisfies your needs at the lowest possible cost to you.
We continue to work for you after the deal is finished, ensuring that we asess any new offers that become available which may improve your current deal.
One Stop Lending
We give our clients access to Personal Loans, Home Loans, Investment Loans and Commercial Loans. You always only deal with on person for all your lending services.
How We Work With Our Clients
We can meet clients in our office, in their home, their office or the local coffee shop. Our initial interview will helps us understand the clients needs in the short, medium and long term so that we can find the best possible lender for your loan.
The world of financing continues to be more and more complicated. Our Lenders have experience in finding the right product to meet the specific needs of each of our clients. During this phase, we identify two to three options that may be suitable.
Our Lending Specialists will present to you a number of options available outlining the differences, benefits and downfalls of each option presented. Our preferred option and reasons why, we consider this the best fit for you will be clearly explained.
Our Lending Specialists work with our clients to have all documentsation signed, submitted to the lending institution and processed through to approval.
We pride outselves on client service which is why our Lending Specialists establish a reasonable review timeframe where they touch base with our Clients to ensure everything is working as planned. During this review, the client is made aware of any new financing options in the market.
Brisbane Home Loans is not about one off loans. We truly care about our clients, which is why we stand by their side beyond the completion of the loan.
Being Our First Home It Was Great Having The Knowledge of Daniel & The team at Brisbane Home
We have been working with Daniel and the team at Brisbane Home Loans for the purchase of our first home, being first home buyers it has been great having the knowledge of Daniel & the team at Brisbane Home Loans to support us. We can’t thank them enough for their support and making themselves available to answer all of our questions. I’d highly recommend Brisbane Home Loans.
We Saved More Than 1% On Our Existing Home Loans
We didn’t realize how important it was to review our home load until we engaged with Daniel and Jordan at Brisbane Home Loans. They helped in submitting our application which resulted in a saving of over 1% in interest on our loans, plus a reduction in our on going bank fees. I would recommend this business and thank Daniel and Jordan for making the process so easy.
Sam and Nicky
It was Our First Home and We had No Idea. Thanks to The Team From Brisbane Home Loans
Daniel and the team at Brisbane Home Loans were super helpful and friendly to me as it was my first home loan and I had no idea! They answered all my questions and were very hardworking. Would definitely recommend to a friend.
They Made Buying Our First Home Easy and Fun. Thanks
The team at Brisbane Home loans have been super helpful and extremely professional to assist us with all our first home questions.
will be recommending them to everyone I know looking to buy!
Thanks for Helping me Turn my Dream into a Reality
Service was great, very informative and kept me up to date on all progress and all steps. Follow up after it was all done and dusted was also great. Took the stress out of it which was a great help for my busy life. I would totally recommend Dan and Jordan to anyone.
Thanks for helping me get my dream into a reality.
Car Loan Approved In Less Than 3 Hours – So Wrapped
I could not believe how quickly Jordan was able to organise my car loan. He was so helpfull and I am truly greatfull.