Understanding Pre-approval
If this is your first time buying, pre-approval might be a new concept to you. Here’s how it works.
The vast majority of buyers will (at some stage) approach a bank or lender for a home loan. As a buyer, you’ll be asked to provide certain information about your income, etc to prove you can comfortably repay your loan over time. Once your loan is approved, the deal on the house is done and money is exchanged.
In a nutshell, pre-approval means that you’ve spoken to a bank or lender and have provided all the required information, and you’ve been approved to borrow a set amount, if and when you find a property you’re ready to buy.
If this is your first time buying, pre-approval might be a new concept to you. Here’s how it works.
The vast majority of buyers will (at some stage) approach a bank or lender for a home loan. As a buyer, you’ll be asked to provide certain information about your income, etc to prove you can comfortably repay your loan over time. Once your loan is approved, the deal on the house is done and money is exchanged.
In a nutshell, pre-approval means that you’ve spoken to a bank or lender and have provided all the required information, and you’ve been approved to borrow a set amount, if and when you find a property you’re ready to buy.