6 ways to make the most of home loan pre-approval

So you’ve ticked the box for a home loan pre-approval? Before you bring the bubbles, here are six ways you could make the most of your pre-approval

02 March 2021|2 minute read

looking for pre-approval

1. Move quickly

Home loan pre-approval doesn’t last indefinitely. Lenders have their own timeframe for loan pre-approval, and while it’s often 3-6 months, it’s worth using this time wisely.

Your Aussie Broker can explain exactly when your pre-approval will expire, but as moves quickly, it’s a good idea to get started with home hunting, and give yourself time to find the right place.

2. Use pre-approval to set a buying budget

One of the great aspects of pre-approval is that it lets you know how much you can afford to pay for a property. In fact, your pre-approved loan can form the basis your buying budget, letting you hone your property search on places you can comfortably afford to buy.

3. Choose your property with care

Gaining final loan approval can still hinge on a few factors – including the property you want to buy.

You may for example, fall in love with a fixer upper. Your lender however might see the property as beyond repair, or worth a lot less than the asking price. When that happens you may not get the green light for final approval.

If in doubt, talk to your Aussie Broker about the sort of properties that can raise a lender’s eyebrow.

4. Use your pre-approval to stay confident at auctions

Auctions always create a buzz of excitement, however it pays to keep a cool head.

That’s where pre-approval is so handy. It helps you set a bidding limit. All you have to do is stick to this limit, no matter how tempting it is to be the person who delivers the knock-out bid.

5. Let selling agents know your loan is pre-approved

Don’t be shy about letting selling agents know you have loan pre-approval. It shows you’re a serious buyer, and it gives the seller confidence that you’re less likely to bail out of a purchase because of problems arranging finance.

6. Talk to your Aussie Broker if anything changes

Loan pre-approval is based on your circumstances at the time you applied for the loan. If anything changes, it’s important to contact your Aussie Broker.

Remember, if you have any queries regarding your pre-approved loan, your Aussie Broker is the go-to expert who can provide the answers.

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