You don’t need to find your new home before you can apply for a loan. In fact, there are good reasons to speak with your mortgage broker to get your loan sorted beforehand.
Some lenders provide a loan pre-approval which is usually subject to meeting required terms and conditions. This is where your loan limit is approved for a certain time (usually around six months). You’ll have a better idea of what properties to look for, because you won’t waste time looking for something outside your price range, and once you find the right property, you’ll be able to focus on the purchase rather than having to sort out the finance at the same time.
With a pre-approved loan, there are fewer chances of hiccups with the sale process, and in some cases, vendors (sellers) will accept an offer below list price and take the property off the market with confidence knowing the buyer is serious.
If you decide to make an offer you’ll be in a position to move quickly if your finance is sorted – this will help you avoid being missing out on that dream property, and you can bid with certainty at auction.
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