Aug 27, 2018  | Tags: home loan, pre-approval, mortgage broker

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Finding the perfect house is an exciting development in any property search, however it often required prospective buyers to obtain pre-approval for a home loan at very short notice.

Fortunately, there are a number of steps you can take to improve your chances of obtaining pre-approval quickly, so you are ready to bid at auction or put in an offer on the perfect home.

Pre-approval is provided by lenders to give potential home-buyers an firm idea of how much they can borrow, but pre-approval also gives vendors agents the confidence that if they sell their house to you, you’ll be able to pay up at the time of settlement.

1. Choose an experienced mortgage broker

Mortgage brokers know many of the lenders operating in the market, provide advice, help you with the paperwork, and can often secure pre-approval short notice faster than you might be able to by going direct to a lender. They can also often negotiate a better deal for your specific needs than is advertised by the financial institution.

2. Make the right choice, first time round

While any potential home buyer can go to a bank and meet with a lender about obtaining pre-approval, it will save you time and effort in the long run to obtain your pre-approval from the bank you ultimately end up borrowing the loan from. That means making the right choice early on in the process. By using a mortgage broker to secure pre-approval, and ultimately a home loan, you’ll ensure a professional who knows every product on the market is working to get you the best deal possible.

3. Have your financial documentation ready

A lender will want to see all relevant proof of your income and financial obligations before providing you with pre-approval. It’s best to have this documentation ready, even if you haven’t found the right house yet, so you can speed up the pre-approval process. What you’ll need:

-       Proof of identity (passport, drivers licence, birth certificate, Medicare card, bills addressed to you etc) to the value of 100 points

-       Payslips from your employer

-       Evidence of income if you are self-employed

-       Evidence of income from other sources

-       Value of all of your assets

-       Details of any loans you have

-       Details of any credit cards you have

-       Details of any other debts you have, such as a HELP debt

-       Title deeds for any assets you might have

 4. Organise a credit check

To prove your financial circumstances are what they say they are, the lender will organise a credit check to be undertaken.  The sooner you speak to a lender or broker, the sooner this process can be initiated. If the credit check process enables you to borrow, you will receive a pre-approval certificate, which is typically valid for 90 days. 

Get the best home loan for your needs

Calder Financing Broking can find you the best value home loan for your specific financial situation, and can help you secure pre-approval as soon as possible. 

Contact the team or call directly on 08 8373 3333 to meet an experienced broker today for a free, no obligations discussion about your needs.

Written and Supplied by Cliff O’Connell of Calder Finance Broking, for more information please visit the Calder Finance website. Please note that Calder Finance Broking Pty Ltd is a Corporate Credit Representative of BLSSA Pty Ltd ABN 69 117 651 760 ACL 391237.