If you're looking to buy a home, the short answer is, yes!

What is a pre-approval?

It's written confirmation from a lender stating you would qualify for a particular loan amount (subject to meeting some extra lender guidelines). A pre-approval is usually valid for up to 90 days which gives you confidence when searching for that ideal property.

What it's not:

• It's not a guarantee your loan will be approved.
• It does not lock in a rate or commit you to a particular loan type.
• It's not a requirement to use the same lender who pre-approved you

A pre-approval is not a necessity when deciding on a property purchase but imagine visiting an open for inspection and falling in love with your dream home only to try and apply for a home loan to get declined. Not a feeling we would wish upon anyone! 

 The truth is, we see this all the time for various reasons. 

Some of those reasons could be due to:

1.  Credit files:

   Defaults, late payments and multiple applications. You can get a copy of your credit file sent to you for free within ten days at www.mycreditfile.com.au or pay a small fee to get it within one business day. 

2. Affordability:

   Not enough income to support the level of lending required. This one is very common.

3. Employment:

   Probation periods, commission income, maternity leave could also hinder you from getting a loan approved. 

4. Available funds:

   Also known as funds to complete; these funds are used to finalise the purchase. You will need this money for things like your deposit, bank fees, government fees and solicitor costs.

What you need to do:

1. The first step to getting a pre-approval is to speak to a Seed mortgage broker - This email address is being protected from spambots. You need JavaScript enabled to view it. 0421156102 This email address is being protected from spambots. You need JavaScript enabled to view it. 0403675460. We can connect you with access to multiple lenders and find the one that suits your situation.
2. Provide us with the information we need to determine the loan amount for which you can be pre-approved. We will advise you of the documents we need as part of the application process.
3. We will take care of the process and make it as hassle-free as possible for you. Your information will be reviewed, and if you meet the lender's criteria, you will be issued with a pre-approval letter. 

With a pre-approval in hand, there are fewer chances of hiccups with the buying process. Sometimes it might also mean a vendor will accept a lower price knowing you have been pre-approved for a certain amount. 

 Once a price is agreed upon you will be in a position to move quickly because a majority of the loan process has already been completed.

If you have any questions about pre-approvals or want to get one as soon as possible please contact Cristian on 0421156102 or Maria on 0403675460 we would love the opportunity to help.