What is a pre-approval?

What is a pre-approval?

A pre-approval is an indication from the lender (you apply with) that they are willing to approve your loan when you lodge a full application. In most cases, the pre-approval doesn’t get assessed by the lenders credit department or lenders mortgage insurer.

It’s important to understand that the lender is not obliged to formalise an approval of your application once you’ve found the right property.

For people looking to purchase a property, be it owner occupied or investment, it’s common for them to seek a pre-approval. A pre-approval will generally cover things like how much deposit you required, complete a credit check and going through what the monthly repayments would be. This gives them peace of mind that they have finance in order to purchase and that they can make an offer on a property with confidence.

Once you’ve had your pre-approval successfully completed, you can be confident to start looking for a new property. Keep in mind that buying a property is likely to be the largest purchase decision you’ll ever make so be sure to do your due diligence to avoid making costly errors. At Hunter Galloway we can assist you throughout this process. We have an ability to generate property reports (no cost to you) that give you helpful insights that can assist with the negotiation.

Related Article: How Reliable is your Pre-Approval?

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