We get a lot of questions from clients on the benefits of being pre-approved, and if it is something that we recommend.
The short answer is yes!
While obtaining a pre-approval can be a process that takes a few weeks and a lot of paperwork to go through, it has a lot of benefits both for your peace of mind and for a vendor’s peace of mind too.
First of all, it gives you a concrete idea of what you can offer comfortably when you look at making an offer on properties (And if you are thinking of buying, we’ve got some handy articles here for you to look at). This means you have a realistic scope for when you’re looking, saving you heartache when you see a property that you absolutely love but it turns out to be out of budget!
Secondly, it means you can be a bit more competitive with time-frames when you do make an offer, as the bank has essentially done most of the work (and we’ve done the processing work on our end) for your application already.
This can save at least a week of waiting on paperwork! For clients who aren’t pre-approved, we don’t recommend any less than 28 days for finance clauses, but depending on which lender you are pre-approved with this can drop down to as low as 14 days comfortably.
As an added benefit, it also gives the agent who is selling the property confidence in your offer, as being pre-approved means you’re far less likely to have delays or issues on your finance application (provided you don’t make any major changes between getting pre-approved and making an offer on a house). This makes your offer more attractive, and might help it stand out in a crowd.
Finally, (and in our mind the most important benefit) it takes so much stress out of the process of purchasing. There are already so many moving pieces in the process of making your offer and then going through the journey to finance.
Having that certainty on what you can offer, what a reasonable timeframe for your finance clause is, and less paperwork to wrangle during an already paperwork heavy time can really take a big chunk of the stress away for you.
- Written by Lucy Pullen
If you are keen to look at the process of pre-approval, please reach out to your broker directly and they’ll let you know what we need to get started!
For new clients who are thinking of getting pre-approved and have not yet met with a broker, please use our contact form here.