Your mortgage broker can help you obtain a loan pre-approval, which can speed up the mortgage application process greatly, and might mean the
difference between obtaining your home loan and missing out all together. It allows you to shop for property in confidence that finance will
be available. It also shows real estate agents - and vendors - that you're serious about doing a deal, which can help in negotiations. If you're
an investor, having a pre-approved loan not only means knowing your top price, it also gives you bargaining power. And you can act quickly once
you've seen a property you like.
Who offers it?
Most banks and lending institutions, it costs nothing to arrange and your mortgage broker will help you secure it. Some lenders offer on-the-spot
pre-approval that can last up to two months, but this will vary from lender to lender. So work with your broker to explore which lenders and
products best suit your situation before you settle on a property.
How it works
Your lender will look at how much you earn and your credit history in assessing your ability to repay the loan. On that basis, they'll decide how
much they're prepared to pre-approve. Work with your broker to explore all your options.
How it's provided
Usually via a letter or certificate verifying that your finance has been approved and for a certain length of time. You can show the letter or
certificate to a real estate agent or vendor as evidence that a lender is prepared to loan you a certain amount.
How much will you qualify for?
That will depend on your financial circumstances and the lender's criteria. Your broker will help you to work out roughly how much you can borrow
on your salary and your existing financial commitments.
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