Why you should get pre-approved before you put in an offer

Many people think that the best way to do things when purchasing a new property is to go out and find a place and then start to put the wheels in motion when it comes to things like finance. In reality, it is a really good idea to have this sorted out before you even start looking.

Why you should get pre-approved?

There are many reasons that having pre-approval is a good idea. These are just some of them:

  1. You know exactly how much you can borrow and therefore exactly how much you have to spend. Many people think that using a quick calculator on the internet will give them an accurate amount in regards to borrowing. However, these calculators are just rough guides and sometimes the actual amount you can borrow will fluctuate greatly from these quick calculators. The calculators are intended to be guide NOT a conclusive figure.
  2. You can put in your offer with finance approved. This adds considerable weight to you offer and can even put your offer above others that are still “subject to finance”. This can be handy if the property is popular.
  3. You can choose a shorter settlement date. The time allocated for settlement often includes a period where the financial institution approves your finance. If this has already been done, then the settlement process can skip ahead.
  4. You can act with confidence and certainty. Buying a new home is a huge decision and if you know exactly what your borrowing capacity is, then you can focus on other things such as finding the right house and not worry about your finance.

Remember, that getting pre-approval can be a very straightforward process. All you have to do to get the ball rolling is have a chat with one of the brokers from FinanceCorp and they will arrange the rest.