Do you need a Pre-approval? the short answer… if you’re thinking about buying a property, regardless if it’s your first, second or tenth the answer is YES!
I remember when Banks and Lenders did 100% loans, or even when Banks and Lenders would let you add Lenders Mortgage Insurance to the loan up to 97%. These days each and every Lender has a different policy for maximum LVR (loan to value ratio).
In fact each lender has a different policy for everything from maternity leave to casual employment income and that is the main reason I encourage anyone who is looking at borrowing for a property gets a pre-approval before they do anything else!
For example, I have had clients not want to worry about a pre-approval because they have purchased multiple properties before and knew they had plenty of income and equity for the next purchase.
The issue came about when they found their previous lender was still listed on their title as the Mortgagor even though their home loan was repaid and closed years before.
The clients had no way of knowing this would be an issue and that it would take time to rectify, time they didn’t have however, had they applied for a pre-approval before they had a Contract of sale (and 14 days to get finance) it would have been much less stress for them.
There are two types or Pre-approvals and I would always suggest a fully assessed pre-approval because anything less isn’t worth the paper it’s written on.
If you are thinking about buying your First Home make sure you check out the E Book and E Course available to help you on you journey (and get there sooner)
If you’re thinking about your second, third or more properties contact me for an obligation free chat about what I can offer you.