Home Loan Pre Approval
A Home Loan Pre-Approval is where you apply for a Home Loan, before you find the property you want to buy.
It means that the initial paperwork is completed, before you get onto the fun part of buying a new home.
It allows you to search for your new home with peace of mind, you know your Price Range, you know your Lending Range, so you have a more focused shopping experience for your new property.
It may also mean that you are taken more seriously by the Realty Agent as a prospective buyer, because you can demonstrate that you’ve already done your Finance homework.
This may also put you in a stronger position to negotiate price with the Vendor.
Generally a Pre-Approval is valid for up to 3mths, and can easily be extended if required, provided nothing of a material nature has changed about your circumstances i.e. job, salary, and your existing liabilities haven’t increased.
To actually know that you have the ability to borrow – before you buy – can also save time.
If you aren’t sure whether a Lender will consider your application, perhaps a default or inconsistent repayment history may impair your ability to borrow, this is where we can work with you to get these issues sorted out and appropriately tidied up, before going to the next step of a Home Loan Pre-Approval.
If your Savings Plans need some guidance and focus, we can also help you there.
The 5 C’s of Credit is the foundation for all borrowing. Ideally a loan applicant is able to show either a Savings or a Repayment History, to show they are a worthy borrower, these aspects form part of the 5 “C’s” of Borrowing & Lending:
- Cash Flow/Capacity to repay
- Collateral/Security/Property type & location
- Capital/Cash Deposit Savings/Equity
- Conditions/Economic/Lending Policy.
A Contract to Purchase – Contract of Sale by Offer & Acceptance, is a Legal Document so checking out your ability and capacity to borrow is always the first step.
At Horizon Mortgage Planners – we help you Plan - before you buy.
Phone us today: (08) 9474 2500
How much can I borrow?
An instant estimate of how much you can borrow for your home loan.
Basic Loan Repayments
Calculate how much your home loan repayments will be by comparing options like fortnightly repayments, interest rates and length of loan.
Complete Loan Comparison
Use a loan comparison calculator to compare current home loan products in Australia.
Calculate your home loan repayments with extra repayments and results of time and interest saved.
How Long to Repay
Simple calculation of repayments resulting in loan term and overall cost of loan.
Lump Sum Payments
Simple calculation of how a lump sum payment lowers the loan term and overall cost of loan.
P & I / Interest Only
Compare the loan repayments between a principal and interest loan or an interest only loan.
Find out how much your loan will grow to be and how much you or your estate will have left after paying back the loan when the house is sold.
Calculate your repayments based on a split loan between fixed and variable.