Competition for property can be fierce. Put yourself ahead of the buyer pack with a pre-approved loan.
Sometimes referred to as an approval-inprinciple, pre-approval is a general indication of how much you’re able to borrow based on the information you provide to your lender.
Although subject to terms and conditions, a pre-approval basically gives you the green light on your home loan even if you’ve not yet decided on a particular property.
The amount of the pre-approval is usually determined by your ability to meet the loan repayments. Most pre-approvals are valid for up to three months.
There are usually terms and conditions attached to a pre-approval. You will most certainly need to provide more information to secure the loan once you’ve located the home you wish to purchase in order to satisfy all the lender’s documentation requirements, for example.
How do you get pre-approval?
To kick start the pre-approval process you’ll need to arrange a meeting with one of our Mortgage Brokers and supply some key documents. These should include proof of your income – such as a letter from your employer or copies of your pay slips – proof of identity, and details of any assets you own. Other paperwork might include details of any existing loan commitments and limits on credit cards. Once your financial status has been given the tick of approval by the lender, you’ll receive a pre-approval notification that will see you on your way to home ownership in little or no time at all.