It’s important to know your buying power before you start searching for a home.
Home buyers seeking a clearer picture of how much they can borrow can benefit by getting a home loan pre-approval.
A pre-approval is a lender’s written assessment of your creditworthiness for a loan. The assessment includes a borrower’s ‘ability to repay’ a loan, based on income, living expenses, or repayments for existing loans.
The assessment also includes a borrower’s willingness to repay’ a loan based on a number of factors such as your credit history, the stability of your employment and the number of times you change residential address.
With the peace of mind of a pre-approval, home buyers can act quickly knowing that finance is on hand when they have found their dream home. Usually valid for 3 months, pre-approval can be renewed if finding a property is taking a while.
To find out more about how you can secure a pre-approval, contact an Collective Financial Solutions broker today!