For the first time home buyer, negotiating the rough waters of the housing market can seem daunting. There are many hoops to jump through and conditions to satisfy until you can finally call a home your own.
But you can calm these waters somewhat by obtaining a pre-approved home loan before you set sail to explore the housing market. Pre-approved loans also help to alleviate a lot of worry over the future in first time home buyers.
By having your home loan pre-approved before you begin looking for your new home, you know what to expect from a financial perspective. You won’t spend a lot of sleepless nights tossing and turning in your new home over your ability to pay for it.
Things to Remember Before Applying for a Home Loan Pre-approval
If you think getting a home loan pre-approved is the best choice for you (and you should), there are still things that you need to remember before filling out the pre-approval application.
You should always work with a Perth mortgage broker. A mortgage broker can review your income statements other factors and help you narrow down the type of loan that works best for your present financial situation as well as for the foreseeable future.
They will help you target a home price range that you can comfortably handle. This is important because every time you submit a pre-approval application, it gets recorded as part of your credit history.
Home sellers or real estate agents will look at your credit history as part of the sales process. So overstepping your financial ability to repay the loan and having your application denied does not help your chances of closing a deal on a home in the future.
Target the Homes You Know You Can Afford
Having a pre-approved home loan in hand also enables you to narrow your focus and save you time and stress in the house hunting process. It doesn’t make much sense to fall in love with a home only to find out that you can’t afford it.
By getting your loan pre-approved, you will only be looking at homes that you are certain you can afford.
Speeding Up the Home Buying Process
Once you have a pre-approved loan document in place, it can make the actual process of buying a home go much more quickly. Private home sellers and real estate agents both love a buyer who comes to them with a pre-approved loan as it alleviates a lot of the worry over the deal for them as well.
You can move to an unconditional status a lot earlier in the sales process before your settlement date. Home buying is always a stressful process and anything you can do to shorten that process is always welcome, for you, the home seller and the real estate agent.