The importance of getting a pre-approved loan
So you’ve decided you want to get onto that much talked about ‘property ladder’ and you’ve already been busy surfing the net for the perfect home. Looking for a new home can be an exciting and challenging experience. After all, buying a home is one of the largest investments you may ever make.
It’s good to keep a level head and be realistic about what you can afford. Most of us, when buying a home, will need to borrow money to finance the purchase. So before you go any further, it’s a good idea to find out how much you can borrow and that’s where a pre-approval loan comes in useful.
A pre-approval takes into account your financial situation and indicates that you are eligible to apply for a home loan up to a certain limit. It’s not an offer of credit and the lender is under no obligation to lend you those funds. You will need to know the price range of the property you are looking for, how much deposit you have saved as well as your income and living expense.