If you’re in the market for a new property, then it’s important to be realistic about the amount of money you can afford to borrow.
Most people looking to purchase a property either for investment or personal use, will need to borrow money. Having a pre-approved loan is one way of ensuring your property search stays within a budget that a lender will approve.
Brisbane Home Loans, always recommends a pre-approval as the first step in your home buying journey to avoid unnecessary applications and costs that cannot be recouped.
Loan pre-approval means that you submit a preliminary application to a lender prior to finding a property to purchase. The lender will review your application and confirm what type of loan and the maximum amount the lender is willing to lend.
When applying for a pre-approval, you will need to provide some additional documentation, such as; proof of income, proof of deposit, current monthly expenses, and any current credit commitments.
Irrespective of the amount the lender approves as part of the process, we always encourage clients to be prudent and borrow within their ability to service the loan.