Does a First Home Buyer need a Pre-Approval?
Some people swear by a pre-approval, they say it is a must have when looking for a new home. But what is it and does it stand for as much as people think?
A Pre-approval is a conditional approval from a lender, which will indicate how much you’re able to borrow based on your financial situation and credit history.
Here’s how it works!
You’ll need to complete an application form and provide supporting documents such as proof of income, savings, and employment (We’ll help you here).
The bank will then assess the information and issue your pre-approval or raise any red flags they may have uncovered. If your pre-approval is issued this is then generally valid for 3-6 months and you can get out and start making offers.
If you found the dream home and you were not set up for a pre-approval, it is not the end of the world. We have capacity to complete your credit check, your income assessment and your savings assessment. We use the same tools the banks use and we could give you the confidence to proceed. After all a pre-approval is never a final approval anyway, it's just the most you can do before buying.
Your pre-approval is generally valid for 3 to 6 months, and it might list specific conditions which need to be met. From here – you can begin searching for your property based on your pre-approved figure!