The 4 Musts To Get Pre-Approval

Market Insights
8 years ago
2 minutes

Chances are that you are going to need a home-loan to purchase your new apartment.

Having a pre-approval, from a bank or lender, for a certain amount, will give you confidence when looking for that purchase.

A pre-approval is not a guarantee of funds, and the bank or lender can retract on this financial agreement when you approach them for the loan.

The pre-apporval is purely designed to giving you a general idea as to what the bank will lend you.

Be honest with yourself

Give yourself a self-assessment, and understand and come to terms with your current financial status. Does your credit-rating need some tender, loving care?

If you feel like your credit rating isn’t too flash, hold out on applying for a loan, and make sure you set the next year or so, repairing it.

Fatten that deposit

The bigger, the better. Whilst you need a 10% deposit to secure a home, it is the the fatter deposit that makes you a more attractive candidate for pre-approval.

The more the bank sees that you can save, and the more money you have in your bank account, the more likely you are to receive the pre-approval for the rate and the amount that you want.

Stay at your current job

When you approach a bank or lender for pre-approval, it is on the assumption of the circumstances in which you applied.

This means, that if you are considering changing jobs, do not. Simply try and hold out until you have your home-loan and you are comfortable. The banks, ultimately want you to be able to afford and repay the loan, so before changing jobs, make sure that your new position either matches or improves your current circumstances.

Pay down your debt

If you are in a bit of credit card debt, it is time to give your bank statements a makeover.

When presenting yourself to a lender, it is imperative to make your finances look as attractive as possible. Time to get those credit-cards on a diet. Not only will less debt make your finances more attractive, but will also give you peace of mind heading into your loan.

Ultimately, the less debt you have the less you have to worry about.