Importance of a Pre Approval

With the housing market continuing to slow and many auctions not going ahead, its becoming even more important to be prepared.

A pre approval is when your broker will submitt your application to a lender with all supporting documents and the lender will assess your file and give you a conditional approval. This will allow the lender to look at your situation and provide you the assurance that as long as your situation doesn’t change your loan would be approved once you purchase. Also if there is a issue like default or a issue with income type, you as the borrower know up front and allow you to make changes to your application or decide to move to another lender.

Example of some conditions: Valuation, employment not changing, serviceability still being acceptable

Once you have a pre approval it will allow you to make offers on properties or even sign the contract without cooling off period ( always seek legal advice ).

If you have any questions about this or are interested in getting a pre approval done, please call our team at Streamline Finance Services 0417 131 057