Your home loan has been pre-approved! But before you get too carried away, understand there are ways to make the most of this mortgage stage, before you move on to owning your new home.
1. Start looking, don’t wait
Home loan pre-approval doesn’t last forever. Timeframes exist for lenders for loan pre-approval, and while it can often be between three and six months, it’s worth utilising this time.
If you’re unsure of your timeframe, the moneylab team can explain exactly when your pre-approval will expire. But it’s a good idea to get started with the search for your new home to give yourself time to find the perfect place.
2. Use pre-approval to set a buying budget
A great aspect 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 of your buying budget, letting you hone your property search on places you can comfortably afford to buy.
3. Choose your property wisely
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. So it is worth getting advice from your broker once you have found a property that you have set your heart on.
If in doubt, talk to us about the sort of properties that can raise a lender’s eyebrow.
4. Apply your pre-approval price range to stay on-track at auctions
Auctions always create a buzz of excitement; however it pays to keep a steady 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.
Need extra support? Talk to your moneylab 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 broker.
Remember, if you have any queries regarding your pre-approved loan, your moneylab broker is the go-to expert who can provide the answers.