When it comes to buying a house, obtaining a loan is an important step in the process. But when should you apply for your loan?
Commonly people will start their property search, attend open homes, chat to agents, make offers, and then apply for their loan… but this doesn’t have to be the case. Applying and being accepted for a loan can be your first step, and there are many advantages in obtaining a pre-approved loan.
- You clearly know your budget
If your loan is pre-approved, you will know your exact budget. That means when searching online for a property, you know exactly what is within your reach. This saves you time, so you don’t spend hours searching and attending open homes for properties you aren’t able to afford (yet).
- Faster closing period
You’ve found your dream home, you’ve negotiated your price and it has been accepted. By having your loan pre-approved, you will have already completed a huge step in the process. A lot of sales are subject to finance, meaning it’s a long, drawn-out process for the buyer (and the seller). Having your loan ready to go is favourable for the seller, so the process can be wrapped up quickly and you both can move in and out sooner!
- It proves you’re the real deal
Having a loan there ready to go is proof that you’re a serious buyer. When heading to open homes and chatting to agents, dropping your pre-approved loan into conversation is like music to their ears.
Pre-approved loans are valid for up to 3 months, so you have time to make the right decision and scour through the hundreds of properties until finding your dream home.
When the time comes to organise your loan, it is important to make sure you’re getting the best deal. Finance Brokers of Tasmania are the loan experts and can help guide you through any loan application. We also audit your loan every 18-24 months to ensure you’re still getting the best value for money.
Investing is a big step and one that takes time (and savings). Finance Brokers of Tasmania can also assist you in the lead up to your application, to ensure you’re financially ready for your next step.