Despite lockdowns, homes are selling fast and auction results are strong. For buyers, it’s a highly competitive market and having finances approved before auction day can be the different between being a successful bidder or not.
A recent survey showed a whopping 54% of buyers missed out on a property because they didn’t have their pre-approval in place.1
A pre-approval lets your house hunt and bid at auction or negotiate with confidence because you know exactly how much you are eligible to borrow.
Pre-approvals
- Help you set a realistic budget before you start house hunting
- Help you avoid over-committing
- Give you confidence when making an offer or bid at auction
- Allow you to focus your house hunting energy on houses within your limit
A pre-approval means that a lender has agreed, in principle, to lend you money for the purchase of your home. It’s an agreement that is conditional upon additional criteria being met.
The pre-approval is usually provided in a letter or email and outlines how much the lender may be willing to lend you, and list the additional criteria that must be met.
The additional criteria usually relate to:
- The value of the home
- The type of home
If you’re thinking of buying, talk to Court Financial Services about obtaining a pre-approval so that you’re be ready to pounce when you find your ideal property.
To get a pre-approval Court Financial Services will submit information about your current circumstances to the lender (such as income, expenses, employment status, debts) so that the lender can assess your loan eligibility.
One of the conditions of the pre-approval will be that there are no changes to these circumstances.
Pre-approvals are only valid for short periods – approximately 3 – 6 months, and if your circumstances change within this time, you will need to re-apply.
- Property Possibilities: Buyers’ Outlook Report, Aussie and Lonergan Research
https://www.aussie.com.au/content/dam/aussie/documents/news/aussie-property-buyers-report-may-2021.pdf
