By far, this has been one of the most pressing questions first home buyers ask. You know that getting a home loan pre approved is an important step, but how exactly do you do it? After helping my clients complete the process, I decided to make this summary for you to use as a guide.
Go over your current finances
Like I always tell my clients, you first need to get a rough idea of how much you can afford to borrow for your home loan. After all, you wouldn’t want to bite off more than you can chew, right? Think of your income and regular expenses. Check your assets and how much you still owe on your debts. Ask yourself how much you are willing to spend on monthly repayments. Once you consider all these factors as you try to get your home loan pre approved, you can plot a financial plan that won’t leave you in a crisis.
Think of the home loan you’re applying for
A lot of people dive into the first home loan offered by their lender. They assume that it will get their home loan pre approved much faster. What they don’t know is that there are plenty of other home loans that could’ve been a better fit for them. There’s fixed home loans, variable home loans, and all sorts of stuff. Each of these home loans has its own set of pros and cons. So, before you decide on the type of home loan you’re applying for, always do a bit of research. It ALWAYS pays to know what you’re getting yourself into. Remember, signing up for a home loan is long term commitment. It’s something you surely don’t want to regret for the years to come!
Submit an application to get your home loan pre approved
Now that you have a grasp about the kind of loan you want, applying for a pre-approval with your bank is much easier. In most cases, banks allow you to apply online, over the phone, or in person. Of course, this goes without saying that your initial application will need personal info to verify your identity.
After that, your lender will then inspect your credit report. They will also look through financial health and the type of loan you’re applying for. Like I said earlier, it’s wise to check your finances and look through the different types of home loans. Doing so improves your success rate when it comes to applying for a pre approval. It also helps ensure that you won’t have to keep going back and forth during the whole process.
Well, that should sum up the process of getting your home loan pre approved. I hope you learned something new after reading this blog! Still, if you find yourself needing a bit of help, that’s okay. In fact, that’s what I’m here for.
As a mortgage broker for years, I’ve assisted many clients with their pre approval. Not only do I walk them through the process, but I also made sure they got the best deal on the market. On top of that, they managed to avoid mistakes because they can readily consult me for advice. Don’t you think that’s a lot more convenient than going on the task by yourself?
Let’s talk about getting your home loan approved as soon as possible! Send me an email with your concerns or questions and we’ll get you started on your pre approval.
Will Bell Mortgage Broker is a mortgage and finance broker based in Melbourne specializing in residential home loans. Will is all about the average Australian understanding just enough of the broader economy to take action on your own personal economy. He is the host of the My Personal Economy Podcast which you can check out here.
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