Conditional pre-approval can give you the ability to negotiate with confidence.
Douglas Piening 26/6/2018
Buying a home can be stressful. It can be more stressful if you have uncertainty around your financial situation when you are looking to buy a home.
Having a pre-approval for a home loan will help a borrower fully understand any issues they have in the application process and provide an accurate estimate of their borrowing capacity (as opposed to the often-misleading online calculators)
Piening Financial Solutions Director of Property Finance, Douglas Piening says that having the pre-approval means you are “80% of the way through the process and ahead of the competition” when buying a property. “It means that any application issues are sorted out when you are not under time pressure, rather than rushing to meet a finance clause or with a settlement date looming”
Given the increasing restrictions on lending at present, many borrowers are finding that they can’t borrow as much as they thought they could. It is wise to understand this and address these issues prior to entering into a binding Contract of Sale.
So some terminology:
Conditional pre-approval requires a customer to provide their Mortgage Broker with paperwork including personal details, living expenses, deposit size and income and living expenses so the chosen lender can clearly determine what they are willing to lend.
You need to know that this is not formal approval just yet — instead it’s a strong guide to what you can afford to borrow and therefore spend.
Unconditional or Formal approval is when a bank looks at all the paperwork relating to the loan application and property, including a property valuation and can definitely give the customer unconditional finance for that property.
If you think that a pre-approval will help you with your first (or next) purchase, please get in touch.
Douglas Piening is a Mortgage and Finance Broker with Piening Financial Solutions and is passionate about providing advice you can trust. Whether it’s buying a home, refinancing a loan, investing, building or renovating, Doug brings a wealth of knowledge and expertise to assist with your lending needs.
You can contact Doug at firstname.lastname@example.org or (m) 0408 671 524.
Want to hear what clients have said about working with Doug? Take a look at these reviews from LinkedIn and Facebook.
This information is of a general nature only and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.