The Importance of Pre-Approvals

If you haven’t started your property search, or are still looking, a pre-approved loan can be very useful. It gives you a clear picture of what your spending limits are and gives you peace of mind that if you find a property you are really interested in you can move quickly to make an offer. And it may put you in a stronger negotiating position than other potential buyers who don’t have pre-approval.

A mortgage broker can take care of the paperwork to lodge a loan application and find a suitable lender, leaving you more
time to find the perfect property. A pre-approved loan is valid for 3-6 months and substantially speeds up the process in getting your unconditional finance arranged. That means you can get those contracts exchanged quicker to secure your dream property.

Find out what’s involved in taking out a loan, from start to finish

It costs nothing to speak to our friendly and professional staff, who can quickly find out how much you can borrow and which loan suits your needs, plus answer any questions about the application process.

What advantage is there in using a Mortgage Broker?

A broker will locate the most suitable and appropriate loan for you. A broker, unlike a banker, has access to a wide range of lenders which ensures you obtain the most appropriate loan for your circumstances. A broker does all the negotiating with the Bank on your behalf, prepares and lodges the application and attends to all the paperwork & documentation.

How much does a Finance Broker cost?

Nothing, in fact they usually save you time and money. There is no charge to use a broker, the Banks pay a commission for sourcing them business.

What will I need to provide to apply for Finance?

Generally speaking we will need to supply the bank with details of your Income, Assets and Liabilities and Identification together with a completed loan application. To confirm these items the Bank will ask for:

  • 2 recent payslips (if you are a salary earner)
  • Financial statements & tax returns (if you are self-employed)
  • Recent bank statement (to evidence your savings)
  • Recent statements for any loans or credit cards (to verify existing debt)
  • Identification (D/Lic with photo &/or current passport, Medicare card & Credit card)

The requirements for income & liability verification varies from Bank to Bank, so ensuring your records are up to date and accessible for when you speak to our staff is a good start.

How long does the Loan approval process take?

Most pre-approvals will take between 3 & 5 days and are dependent on which bank we use and also the complexity of your loan application. The pre-approval is the first step and is always conditional upon a valuation of the property being purchased.

Usually once someone signs a contract to purchase a property and requires finance, the rush is on to get finance approval within 7-10 days. If you already have the pre-approval set in place we will only need to do a quick valuation. On some occasions a full valuation may not be required as some Banks will accept the contract as confirmation of the property value.