🏠 First Home Buyer Series : Part Four

So, you’re thinking about buying a property this spring/summer? Get a head start by being pre-approved before you hit those TradeMe listings.

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What is a pre-approval?
Being pre-approved means you can look at properties knowing exactly what your budget is. We aim to get you an approval for your loan so you have an indication of how much you can afford and a purchase price range to work with. A pre-approval is usually conditional, so you AND the property you choose will have to fulfil the lender’s requirements as well as other conditions that may be imposed. Our advisers will help you work through any conditions that are set. 

Another advantage of being pre-approved before putting an offer on a property is that you have already got the ball rolling. Having a pre-approval saves a lot of time (and stress) by ensuring your finances are in tip top shape before you make that conditional offer.

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So what’s involved with the pre-approval process?

We will sit down and review your financial position. We do this by looking at your income and expenses, any debts you have such as credit cards, personal loans or hire purchases, as well as what savings or funding you have available to use as your deposit. (Don’t forget to check out our previous posts on repayments and deposits if you’re new to the series or you need a recap). You’ll also need to provide proof of ID, proof of address and 3-6 months bank statement history. Here’s a link to our handy checklist of what information we need so you can make sure you have everything ticked off.

Everything looking peachy? We will then submit your application to the lender(s) which best suit your needs. The difference between using a mortgage adviser and going to your bank direct, is that our advisers have equal access to all reputable lenders and we don’t play favourites. Our team knows the different processes and policies for each bank intimately, so we can complete your mortgage application and place you with the right lenders for your circumstances. We aim to have them say ‘Yes!’ the first time so there are no rejections against your good name. If you already have a good relationship with your bank, and perhaps even a specific person you like dealing with, then talking directly to your bank may be the preferable option for you.  

Once your application is received, the lender will assess the information we have provided them, your credit history and make a decision on whether the loan you’re after is able to be approved or not. 

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What do I do after I get my pre-approval?

Now comes the exciting part. Time to start looking at properties! We’ll go through the house-hunting process in next week’s blog post. Stay tuned!