Why Get Home Loan Pre-Approval

Surprises may be great for your birthday or the holidays, but never for your home loan. Imagine yourself finally finding the house that you want only to find out later on that your lender would only lend a tiny fraction of what the property costs. It's embarrassing and frustrating. It wastes your time too, since you'll have to shop for a new home again.

The Thing About Calculators

Home loan repayments calculators are great if you wish to get a feel of how much you can borrow. However, keep in mind that it's still just an estimate. Sometimes, you under or overestimate your needs, which fails to give you the exact picture of how much you can borrow. It still takes people to assess your situation in this case. That is why getting a home loan pre-approval is important. But let's get deeper into the subject. Here are some reasons why you need to get pre-approved before you pick a home:

  1. To save time. As we mentioned earlier, it takes time for you to find a home and then go through the process of applying for a loan. However, with a pre-approved loan, you could quickly grab your property of choice because you already know how much you can borrow for it. This speeds up the process for you significantly.
  2. To deal with real estate agents faster. When you have a pre-approved loan, real estate agents are more likely to treat you as a serious buyer. As with getting your property of choice, this is essential in going through the buying process faster.
  3. To know how much your repayments will be. Again, you don't want surprises. Otherwise, you might end up stretching your budget too far. Getting pre-approval will give you an idea of how much your repayments will be, which is important especially if you're planning for the long term.
  4. To join auctions with confidence. Knowing your limit at auctions is essential. You don't want to overpay and you don't want to spend more than you have, either. But with a pre-approved home loan, you'll be able to bid with confidence because you know exactly how much you can spend.

Speaking of home loans, whether you need to pay off yours sooner or would like to apply for a new one, our qualified advisors are ready to help you. They will put your personal circumstances into the equation and provide you with rate comparisons of Australia's top lenders. This gives you the power to choose a home loan that truly fits your needs and budget.

Get your quotes now

What to find out more? Enquire now

Published on November 11-th, 2012 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

More on this topic

Enquire about Home Loans
Please enter the estimated value of the property

Important Information

Not all providers in the market are included in the comparison.

Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs.