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Benefits of pre-approval

Updated: Nov 1

Discover the key benefits of home loan pre-approval for confident buying.

Home loan pre-approval benefits explained to help you confidently buy your dream property.

Congratulations on reaching this exciting milestone of pre-approval for your home loan! 🎉 

We’re thrilled to welcome you to our free 12-week educational course, designed to guide you from pre-approval to finding the perfect property. In this first lesson, we’ll cover pre-approval fundamentals and their significant benefits as you navigate the home-buying process.  


Learning Objectives: 


  • Understand the benefits of pre-approval. 

  • Know the next steps in the home-buying journey. 


 

What is Pre-Approval? 


A home loan pre-approval is an initial agreement from a lender, indicating how much you can borrow based on your current financial situation. This pre-approval is generally subject to final approval, which will be granted once you find the right property and meet all the necessary criteria. Think of it as your financial green light to start house hunting with confidence.  


Benefits of Pre-Approval: 


  1. Understanding Your Budget: 


Pre-approval provides you with a clear picture of how much you can borrow, taking into account your income, expenses, and credit history. This helps you set realistic expectations and focus on properties within your budget, saving you time and effort in the search process.

 

  1. Competitive Advantage: 


When you’re pre-approved, sellers see you as a serious buyer who’s ready to move quickly. This can give you a competitive edge in the market, especially in scenarios where multiple buyers are interested in the same property. Your pre-approval signals to the seller that you’re financially prepared, making your offer more attractive. 


  1. Speeding Up the Process: 


Being pre-approved means that much of the groundwork for your loan application is already complete. Once you find the right property, the process of securing your home loan can be much faster, helping you close the deal more efficiently. 


  1. Rate Locking: 


For fixed-interest rate lending products, some lenders offer the option to lock in your interest rate during the pre-approval stage. This can be a significant advantage if you’re concerned about potential rate increases shortly, as it provides peace of mind knowing your rate is secured. 


  1. Problem-Solving: 


Pre-approval also helps identify any credit or financial issues that could potentially slow down the final approval process. By addressing these obstacles early on, you can minimise delays and ensure a smoother journey toward purchasing your home. 

 

If you’re eager to dive deeper into the entire course, feel free to explore all the lessons on our blog here

 

DISCOVER MORE >

 

Is getting a pre-approval right for you?


If you have any questions about your pre-approval, such as when it’s due to lapse, or if you need further details, feel free to reach out. We’re here to support you every step of the way.


Call us at (02) 8313-8400 or request a call back. 

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