The Benefits of Home Loan Pre-Approval in Australia

A pre-approval is when a lender approves you for a home loan before you actually decide on a house to buy. It’s essentially a guarantee that you will be approved for a home loan if you decide to apply for it. By being proactive with a pre-approval, you reap a host of benefits that can be useful when buying a home.

Peace of Mind

Buying a home can be a stressful and complicated process. By obtaining a pre-approval, you can rest easy knowing that once you decide on a home, it can be yours.

Focus on What Matters

Getting a pre-approval allows you to narrow down your home search to those that fit within your budget. Knowing what you can borrow helps you cut out the homes you can’t afford and spend more time looking at the ones you can.

Increased Bargaining Power

Sellers will be more willing to accept your offer if they know you are pre-approved. This gives your offer more credibility and the potential to negotiate a lower price than listed. If the choice comes down to your offer and another at the same price, the seller will likely choose yours, knowing it comes with a pre-approval.

Armed for Auctions

It’s easy to get caught up in the heat of the moment at an auction, fighting for the house of your dreams. A pre-approval gives you the knowledge to protect yourself from bidding more than you can afford. You’ll know the limits of your loan and what you can and can’t afford, safeguarding yourself from any rash decisions.

Buying a home is a big decision that requires many hours of careful consideration and countless more searching for homes. Make the job of buying a home easier by obtaining a pre-approval.

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