Pre-approval
Gain control and build wealth, invest in property through your superannuation with our SMSF loan expertise.
Pre-approval is exactly what it sounds like: an assessment from the lender that provides documentation stating they will honour a loan up to a specified amount. This paperwork demonstrates your readiness to purchase within budget, facilitating negotiations for a swift sale. The assessment also evaluates your repayment capability, considering your income, living expenses, and other financial obligations. Pre-approvals are typically valid for three months and can be renewed. For more information on securing pre-approval, call us today.
Key Features:
- Indicative Offer: Pre-approval provides an estimate of your borrowing capacity based on the financial information you provide to the lender.
- Confidence in Property Search: With a pre-approval in hand, you can search for properties with a clearer idea of your budget, allowing you to make offers with greater confidence and be a more attractive buyer.
- Time-Saving: Pre-approval can expedite the formal loan application process once you have found a property, as some of the financial vetting has already been completed.
- Validity Period: Pre-approvals are usually valid for a set period, often around 3 to 6 months, giving you a timeframe to find and secure a property within budget.
Considerations:
- Conditional: Pre-approval is not a guarantee of final loan approval, as it is often subject to certain conditions, such as a satisfactory property valuation and verification of financial information.
- Credit Checks: Pre-approval typically involves a credit check, which can impact your credit score, especially if you make multiple applications within a short period. It’s important to keep this in mind.
- Changes in Circumstances: Any changes to your financial situation or the lender’s criteria can affect the final approval, so it’s important to maintain financial stability during the pre-approval period.
- Market Changes: Interest rates and lending policies can change, potentially impacting your borrowing capacity or the terms of your eventual loan.
Role of a Broker
As a broker, we provide guidance and support tailored to first home buyers, helping to demystify the home-buying process. Our services include:
- Market Knowledge: We offer insights into the latest loan products from a range of lenders, ensuring you’re aware of all available options.
- Personalised Service: By understanding your specific needs and financial capacity, we can identify loan solutions that align with your goals.
- Application Process: We assist in preparing and lodging your loan application, ensuring all necessary documentation is in order and compliance with lender requirements is met.
- Communication: We act as the point of contact between you and lenders, managing negotiations and correspondence to streamline the approval process.
- Ongoing Support: From pre-approval to settlement, we provide continuous assistance, answering questions and offering guidance throughout your finance journey.
If you’re ready to take the next step, please reach out to our team today.
