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Finance for buyers and pre-approval

Finance is an important step in the property-hunt, as the amount you’re able to borrow will impact your spending limit on a house.

The buying process is a lot smoother when you have your finances in order.

Before you begin your search, have a lender assess your loan-taking ability for an indication of your purchasing power and the maximum amount you can spend on a property.


An important step in the property hunt is seeking pre-approval before deciding on the property you want to buy.

Pre-approval is where your home loan either has been, or will be, approved when you find the property you wish to purchase. Pre-approval is subject to a few conditions. One of which might be a valuation of the property in question to ensure that the purchaser is not borrowing more than required.

The pre-approval process is generally as follows, however, each lender has their own process.

A purchaser can approach a lender, apply for a home loan and supply all the necessary documentation and personal information. The lender will usually ask for evidence of your current financial situation to assess your ability to repay the loan.

Following this, the purchaser would attend a loan interview with a loan officer and, if successful in their application, will obtain approval.

Pre-approval usually lasts for 3-6 months and shows you’re eligible to apply for a loan up to a certain amount.

While it doesn’t commit you to a loan, it allows you to set an affordable price range, aids your ability to make an offer and tells vendors you’re serious about buying.

It is recommended that buyers seek pre-approval prior to making offers.

Mortgage broker

You can also hire a mortgage broker to find you the most suitable loan to meet your needs.

A mortgage broker works to provide you advice on the different types of loans, features and options available. They help you evaluate and compare your options to assist you in choosing the right loan.

However, it is important to do your research. Research the mortgage broker, look up reviews, testimonials and ask people around you who’ve had experience with a broker.