What is a preapproval?

“Preapproval” is an offer from a lender to provide finance for a future purchase conditional upon finding a suitable property.

Before you start looking for a home or investment property, you should consider applying for a preapproval.

But why is it important?

A preapproved home loan provides you with two very important benefits:

1. Credit Check & Income Verification

The three main criteria for getting a loan are appropriate credit, income, and security. A preapproval checks your credit and verifies your income to get you that much closer to securing an offer of finance.

2. Negotiability

As the Brisbane property market heats up, more and more real estate agents are insisting buyers providing offers in writing backed up by a preapproved finance letter. If you were selling your house and had two similar offers, you would be more likely to accept the offer that has their finance organised.

How do I get preapproved?

If you would like to get preapproved for your next purchase, an Urban Home Loans Mortgage Broker can organise this for you, book an appointment on the right to see with a home loan expert today.

 

Author: Ben Heremaia

Speak with an Urban Home Loans finance broker today on 3841 4831.