Are you planning to invest in property or looking to buy your dream home in the near future? If so, getting your finance pre-approved should be at the top of your priority list. Pre-approval offers you the confidence and security of knowing exactly how much you can borrow from the bank. In the current market, where opportunities can arise swiftly, having pre-approval is more crucial than ever. In this article, we’ll explore the importance of pre-approval and how it can save you from potential property-related disasters.
The Power of Pre-Approval
Imagine this scenario: a fantastic investment opportunity or your dream home comes onto the market, but you are not sure how much the bank will lend you. That uncertainty can quickly turn into missed chances and disappointment. However, by arranging pre-approval with a bank, you can avoid such situations and enjoy several advantages:
- Confidence in Budgeting: Pre-approval provides you with a clear idea of how much the bank is willing to lend you. This allows you to set a realistic budget and prevents you from overcommitting or missing out on a great opportunity due to hesitation.
- Longer Window of Opportunity: Typically lasting for 90 days, pre-approval gives you ample time to search for the right property without worrying about changes in interest rates or borrowing conditions.
- Competitive Edge: In a competitive market, sellers are more likely to consider offers from buyers who have pre-approval. It shows that you are a serious buyer with your finances in order, which can give you an edge over others who are not pre-approved.
Examples of Pre-Approval Success
Let’s take a look at some real-life scenarios where pre-approval has been a game-changer:
- The Limit Buyer: A single professional with an exemplary credit history is eyeing a property at the upper limit of his borrowing capacity. With pre-approval, he gains the confidence to bid at auctions, knowing precisely how much he can spend.
- The Charitable Couple: A young couple working in the For Purpose sector faces unique challenges with their salary packages. Different banks assess tax-free components differently for employees in their industry. Pre-approval ensures they find a bank that will lend them the right amount.
- The Forever Home Seekers: A mature-aged couple looking for their forever home need to find a bank that appreciates their financial position and is comfortable lending to older applicants. Pre-approval helps them identify the right bank before making an offer.
Not All Banks Are Equal
It’s essential to note that not all banks have the same lending criteria. Some may not lend to individuals on job probation, for properties like lifestyle farms or small units, or to casual employees. Failing to secure pre-approval and choosing the wrong bank could leave you in a tough spot. But fear not, we’re here to help!
Getting your finance pre-approved is a proactive step toward securing your financial future and avoiding property-related disasters. With pre-approval, you gain the confidence and clarity needed to navigate the real estate market successfully. So, whether you’re an investor looking for profitable opportunities or a homebuyer seeking your forever abode, don’t hesitate to arrange pre-approval. For a chat about your finance and pre-approval options, feel free to contact Graeme at 02 9922 5055. Take control of your property journey and secure your peace of mind today!