Pre-Approval…Be Prepared!

You’ve decided to take the plunge and buy a property; it may be your first, or a subsequent number, even an investment property.  Congratulations!  However, it is strongly recommended that you gain pre-approval prior to looking – this will save you time and minimise the likelihood of disappointment by looking at homes that end up being outside what your bank agrees to lend you.  It also means that when you find the property you like, you can make an offer straight away.

There are two types of pre-approval.

  • Full Assessment – This is where the lenders credit department do a full assessment including reviewing your documents and conducting a credit check.  This is the most thorough, so can be heavily relied on.
  • System Generated – Potentially you may submit a full application and supporting documents, but these do not go through the full assessment process.  This type of pre-approval will have a lot more conditions and relies heavily on the details that you included on your application.

Despite the shortcomings, it is highly advisable that a pre-approval is completed prior to making an offer on a property.  It is the best indicator that your scenario will be acceptable by the lender and gives you confidence to go house hunting and/or make an offer.

We work with a mortgage broker who can assist you, at no charge to you.  Contact us for further information, and good luck!