The application process for a home loan can be a complicated one. So Don’t put yourself in a stressful situation
Here’s a breakdown of the different levels of approval and what they actually mean for borrowers.
Loan pre-approval has different names with different lenders. It can be referred to as a conditional approval, indicative approval or approval in principle.
Pre-approval is only an indication from a lender that they are willing to approve the loan once a full application is submitted. In most cases, a pre-approved loan is not fully assessed by the lender and as such, some lender will not fully vet through the supporting documents until buyer finds a property. As it too many pre approvals will clog up the system.
Fast on the spot approval
Most lenders offer to pre-approve a loan application online in as little as thirty minutes. On-the-spot approvals don’t have time to be assessed by the lender’s credit department, and that means, they are not indicative that a loan will be formally approved down the track.
Borrowers should not take on-the-spot approvals as the OK to make an offer on a property or bid at auction.
The full loan application process
For buyers to have the confidence that they will receive formal approval, they are required to provide the following:
A full assessment of your loan application by the lender’s credit department could take a few days or more.
Have the confidence to buy
Often, people who are going through the home buying process don’t have a full understanding of what the different approval options mean.Hence working with a mortgage broker to get everything sorted is the most important thing
Please Contact Victor Foo https://vichomeloan.com.au/free-quote/ Do input some figures regarding your current situation. We as brokers, assess your borrowing power offline, if you go to a bank and ask, it will most likely create a credit enquiry on your credit file, too many credit enquiries will affect your credit rating.
You are dealing with the Business Owner direct, we do this for a living, not for a paycheck for bonus like the bank’s staff. Our service is free for you No pushy sales, any questions in mind, Send Victor Foo an email, or SMS, or call, even on weekends.
Different individuals have different circumstances, gone are the days of going to one bank, you will need to explore your options, and while exploring don’t mess up your credit file. Doing this with Victor Foo, I will prepare you to buy, with generally cheaper overall option.