Three steps to home loan pre-approval

Spring is just around the corner which traditionally means the property market will start to warm up. If you are considering making that next property purchase, it is recommended to get a home loan pre-approval first. Not only does it save you time on your property search but also protects you from overspending at an auction.

How long does pre-approval take?

Turnaround times for pre-approvals vary for each lender from the time of application submission. Verify with your broker the expected timeframe for your preferred lender. Providing us with the correct documentation up-front will help achieve a speedy turnaround.

Follow these three easy steps to get your home loan pre-approval.

  1. Collect your documents
    1. Proof of identity
    2. Proof of income and savings
    3. Proof of living expenses and other expenditure
    4. Evidence of current assets and liabilities.
  2. Talk with us to find out
    1. How much can you borrow
    2. How much you require for a deposit
    3. How much you can repay each month
    4. If you qualify for a government grant or concession.
  3. Submit pre-approval application with a lender
    1. We fill out the forms and do all the work
    2. The lender provides confirmation in writing
    3. Pre-approval lasts for 3 months and can be extended again.

f you’re ready to start your hunt for a new home or investment property, get in touch with us to organise pre-approval early so you are ready to act fast when you find the right property. Learn more about the benefits of pre-approval.

Why it’s a good idea to get pre-approval

You may have heard it’s important to get a home loan pre-approval. But why do you need it?

Pre-approval confirms you’re eligible to apply for a home loan up to a certain amount. Essentially, the lender checks your financial circumstances to decide if you’ll meet their criteria and can afford to repay a mortgage. It is also a recommended first step to your property search because of the numerous benefits it can give you.

Benefits of a home loan pre-approval

  1. Confirm your borrowing power  Before you start searching for a property, it’s important to confirm your borrowing capacity. Online calculators can give you a general indication of what you might be able to borrow given your income and savings. But they don’t confirm what size repayment you’ll be able to make after you meet your other living expenses and financial commitments.With a loan pre-approval, you’ll know exactly how much you can afford to pay for a property. It gives you a solid understanding of your finances and a clear spending limit. Getting pre-approved through a reliable broker (like me) can also help identify possible issues that you may not be aware of, as well as spot something that may have been overlooked
  2. Save time on the property search   Imagine spending a lot of time looking for your dream home, only to be rejected because you can’t secure finance. Getting a pre-approval will confirm how much you can borrow and help you save time, avoid wasted effort looking at properties you can’t afford, and prevent disappointment.
  3. It gives you a competitive advantage  In a competitive property market, it’s important to move fast. Sought-after properties sell fast and having a pre-approval allows you to make an offer as soon as possible. Pre-approval gives you the ability to make an offer on a property on the spot, with the confidence of knowing you’ll be able to get the finance organised quickly. It also signifies to vendors that you are the real deal. If you are bidding at an auction, a pre-approval also helps you negotiate from a position of strength.
  4. It protects your deposit  Before you hand over your deposit money, it pays to make sure you can get the home loan you need to complete the purchase. If there is some issue with your eligibility or a lender won’t approve the amount you need, you could potentially lose your hard-earned deposit.Pre-approval gives you an important financial safeguard. And if you’re buying at an auction, pre-approval is particularly important because your deposit is non-refundable. Once the hammer goes down and you’ve made the highest bid, you’ll be locked into the purchase. For that reason, we recommend you make sure your finance approval is rock solid first.
  5. The property must also get evaluated  Once you find the right property, you’ll still need to make a formal loan application to the lender. As part of this process, the lender will require a valuation of the property you select. Aside from confirming a budget for a home loan, it is also important to confirm if the loan will be approved by the lender for the property you chose. This is an important step as there are some properties that may not be acceptable to some lenders for the following reasons: if it is remotely located, its value is not enough to back the amount of the loan, or the location is ”risky”, among other concerns.

Apply for a loan pre-approval today

If you’re ready to start your search for a new home or investment property, get in touch with us today so we can arrange your pre-approval. We will help you understand the process, which will allow you to shop around for your dream property with confidence.

Refinancing made simple

Are you considering refinancing? You’re not alone.

According to the Australian Bureau of Statistics, the value of external refinancing in May 2023 in seasonally adjusted terms rose 8.1% to $21.0b and was 22.4% higher compared to a year ago.

Indeed, the series of cash rate hikes by the Reserve Bank of Australia (RBA) has left many homeowners reviewing their home loans, interest rates and loan features.

But with hundreds of different products on the market, deciding which home loan is right for you can be overwhelming. That’s where we can help.

As mortgage brokers, we can play a crucial role in providing you with choices tailored to your needs.

Here’s how we can help you.

1. We know the market

The mortgage industry has changed significantly. Interest rates have gone up. Banks have tightened their lending standards. It’s a whole new world for borrowers.

Never before has it been so crucial to have a professional broker on your side. Someone who is knowledgeable about the industry and understands which products suit your specific financial situation and goals.

2. Tailored finance solutions

There’s no one-size-fits-all mortgage. Everyone’s financial situation and goals are different, which is why you need tailored finance solutions.

We will go through your unique financial requirements and search for a loan that’s appropriate for your specific needs.

3. A broad range of choices

We compare a wide range of lenders and products to find the right one for you. We might also be aware of home loan offers or lenders that are not mainstream or well-known, opening up other opportunities.

We also do all the legwork for you, which saves you time doing your own research.

4. No or low cost

Lenders pay mortgage brokers for their business, so there’s usually no cost to you.

What’s more, the commissions we receive are similar across lenders. This ensures there’s no incentive for us to recommend one lender over another. Our job is to act with our clients’ best interests at heart.

5. Make your life easier

If you’re already feeling financially stressed in today’s climate, refinancing might seem all too hard right now. But it’s worth the effort, particularly if it means you can better cope with your mortgage repayments and the rising cost of living.

We take the burden out of refinancing. We’ll run through your financial situation and requirements, and then explain your options.

If we do find you a more appropriate home loan, we’ll liaise with the lender and facilitate the refinancing process.

Common reasons to refinance

Here are some of the common reasons people choose to refinance:

  • To secure a more competitive interest rate
  • To make the most of interest-saving features like offset accounts or redraw facilities
  • To access equity for renovations, additional properties or other financial goals
  • To consolidate debt.

If you’ve been avoiding looking at your home loan since interest rates started going up, it’s time to take control.

Speak to us and we’ll see if we can find you a better home loan that suits your specific needs.

Achieve your investment goals: Loans for your strategy

Whether you’re a seasoned property investor or a newbie, it’s important to get the right team of professionals supporting you throughout your investment journey. Here’s how we can help.

Get the right loan for your investment strategy

There are loads of different investment loans available, so how do you know which is right for you?

We’ll take the time to understand your investment strategy and goals, then find a loan that aligns with your objectives. That might mean working with your financial planner or accountant to ensure everyone is on the same page.

Gain access to exclusive products

We have access to loan products that aren’t advertised by lenders. They may have more competitive interest rates or features that can save you money in interest.

Tap into expert knowledge

We can also boost your property investment success as we keep abreast of the ever-changing and complicated range of finance options available to property investors.

Whether you’re looking to borrow through a trust structure, within a self-managed super fund, or something more mainstream, we understand the criteria lenders will be assessing you on and can maximise your chance of a successful loan application.

Build your portfolio

If your property investment strategy is a long-term journey and you plan to acquire several properties, we can guide you about the type of finance you need to build your portfolio.

Whatever your long-term portfolio goals, we will work with you to find the right finance for your needs and create a finance strategy to expand your property portfolio.

Save time and money

Shopping around for the right investment loan can be time-consuming and tedious. Different lenders have different risk appetites and lending policies, and it can all become a bit of a mind field quickly.

By doing the hard work for you, we can save you time and money – and a few grey hairs. We will compare different investment loan options and find the right product that meets your investment goals.

Ready to chat?

Whether you’re rentvesting, buying and flipping, buying and holding, subdividing or buying off the plan, we can help line you up with the finance you need to make your investment goals a reality.

To find out more, get in touch today. We’re here to help.