Whether you’re on the Saturday morning auctions circuit or negotiating with real estate agents, securing a loan pre-approved could make the difference between finding your dream home and actually buying it!
Knowing your borrowing capabilities before you set foot in the property market is a big advantage as you’re able to hone your search to the properties that are within your budget. But a pre-approved loan is also a powerful negotiation tool in both a buyers and sellers market.
With cash at the ready you’ll have the edge over prospective buyers that have a question mark over their finances – and this can give you a distinct advantage.
Bidding at actions is considerably safer with your finances already intact. Not only do you have a clear idea of your maximum threshold, you know you can move quickly to settle.
But a pre-approval will also strengthen your hand when dealing with a real estate agent or vendor for a property that’s for sale by negotiation. With your finances in order, you’ll have the edge when it comes to haggling on price as you have the bargaining power to offer a faster settlement.
So what’s involved in the pre-approval process, and more importantly how can you secure one?
You may be surprised to hear that the pre-approval process is fast and simple. After an assessment of your financial situation the lender will calculate your borrowing capacity and can sometimes issue a pre-approval in a matter of minutes. Once confirmed, your pre-approval usually has a life of three months.
If you’re thinking about buying a property or are interested in finding out about your borrowing capabilities give your broker a call.