What do you need to get pre-approved?
Getting pre-approved can save you both time and money. It can be extremely beneficial to get pre-approved before you start house hunting. Many people fail to realise how useful it can be to have pre-approval when negotiating for a new home.
Gaining pre-approval is a fairly straightforward process with most of the leg work being carried out by your mortgage broker. Here is what they will need from you:
1. Proof of income: you will need to have pay slips and quite often evidence of your income as per the last financial year.
2. Proof of assets: this can include bank statements, investment account statements and also evidence of your deposit.
3. Good credit: what is examined in a credit rating varies from lender to lender but your broker will be able to talk you through what is required.
4. Employment verification: this is not simply pay slips but also employment contracts. If you are unsure, simply ask your broker what documentation you will need to provide.
5. Proof of identity: All lenders require you to provide evidence that verifies your identity. This will need to also be done during your settlement so be sure you have a current driver’s license and some other forms of identification at the ready.
Remember, that by undertaking pre-approval you are actually bringing forward a lot of activity that will need to be done once you place an offer on a property and require finance. It is often a lot less stressful to do all of this without a looming settlement date.