Mortgage Broker FAQs: Should I get Loan Pre-Approval?

August 13, 2014 by Rebecca Crommelin

In my opinion getting home loan pre-approval is worthwhile. Here are a couple of reasons why;

1. When applying for a Pre-Approval, we need all the correct paperwork for the application. Completing this will save some time in the future. Most lenders will do a full assessment and should there be any obstacles or they require any more information, we can address them in the early stage of the process.
2. By having a Pre-Approval it may help in your negotiations with the purchase. The Real Estate Agents quite often insist you have a Pre-Approval. I must point out that even though you have a Pre-Approval, or an approval in Principle, the Offer and Acceptance must reflect "Subject to Finance" as the Bank has not given "Unconditional Approval". They will still need to do a valuation of the property, check to see if there have been any changes in your circumstances since the Pre-Approval and if the loan is over 80% of the value of the purchase they will need to get approval from the Lenders Mortgage Insurers.