A pre-approval could be the best weapon a home buyer can have when thinking about purchasing a home. Here’s a few reasons why you should always consider a pre-approval before hitting the real estate trail:
You’ll know your bidding limit
Recent CoreLogic RP Data statistics tell us that certain capitals have been experiencing some unheard-of auction clearance rates in the run-up to Easter. Sydney, for example, had an insane 84.6 per cent rate. But did all of those buyers go home happy, or did some of them get carried away in all the excitement of shouting out numbers in a crowded room?
With a pre-approved home loan, you can help ensure this doesn’t happen to you. You’ll know exactly what your upper limit is, and know not to bid higher. Remember that, with a home auction, if you want to back out because you’ve spent too much you’ll end up having to pay substantial penalties.
You’ll know where to shop
Have you ever taken a product to the counter only to find you don’t have the funds to pay for it? The disappointment can be crushing, not to mention the time wasted choosing the product. If you’d known how much you had to play around with, you might’ve shopped for salmon instead of lobster.
It’s the same with suburbs. Knowing the upper limit of your mortgage means you can eliminate a whole swathe of homes from your decision-making, which can make the home-hunting process a lot simpler.
Speak to us today about arranging a pre-approval and discover you purchasing power.