Get a Pre-Approved Loan First
There are still lots of buyers searching for their dream home. But if you want to stand out as a buyer, you need to get a pre-approved mortgage bond before starting your search.
If you know what your budget is you will have the confidence of knowing that your dream home is within your reach.
I recommend that you work with your bank to get a pre-approved loan before you start house-hunting.
A pre-approved loan tells you how much the bank will let you borrow to buy a home. It helps you to move faster and with greater confidence.
You will need to fill out a loan application. You’ll need to provide all important information about your finances. This includes your credit and debit history. You will also need to provide your employment record and residential history. They will also want to know if you have money for a deposit.
These 3 C’s will help determine the amount you will qualify to borrow:-
- Capacity – your current and future ability to make payments.
- Capital or cash reserves – your savings and investments that can turned into cash if needed.
- Credit – your history of paying accounts and other debts on time.
Once you have made an offer on a property, the bank will verify that it is worth the money they are prepared to lend you. The property will act as collateral for the loan.
Having a pre-approval shows sellers how serious you are about buying. It also speeds up the process once the seller has accepted the offer.
