Pre-Approval on your mortgage or finance gives you more negotiating power
While pre-approval in Auckland is particularly desireable due to the competitive nature of the current Auckland housing market, securing pre-approved finance gives house hunters New Zealand wide the ability to avoid disappointment and get a better deal during the negotiating phase because the vendor will take you more seriously.
When you negotiate with finance already lined up, you are able to achieve more concessions from the vendor because he or she will recognise you as a serious buyer – negotiate from a position of strength from the outset.
Talk to LoanPlan today about pre-approved finance – it's easier than you think, and the results may surprise you. It's such a wise financial move in so many respects:
- It gives you a huge boost in personal confidence during the house hunting phase.
- You save time, effort and money because you are more focussed on the properties you can afford.
- Get any credit issues cleared now to avoid disappointment later.
- Be in a position to build an accurate budget, taking into account transfer and lawyer's fees, not to mention repayments and affordability.
- Once you're pre-approved, you never have to bite your nails wondering if you'll get the finance.
- Get in to your dream home faster.
If you would like sound advice on funding property investment, please complete the short enquiry form and one of our specialist LoanPlan consultants will contact you today.
Alternatively call us on 0800 56 26 75 (0800 LOAN PLAN). It doesn't matter where you are located -- Takapuna, North Shore, Auckland or anywhere else in New Zealand, we can help.
Auckland house-hunters: the truth about home loan pre-approvals
What is a Pre-Approval?
Pre-approval (also known as Conditional Approval) means a bank will lend you money up to a specified limit, subject to certain conditions, including:
- Bank approving the security
- Provision of a satisfactory purchase agreement.
There will be a time limit placed on the pre-approval, usually 90 days. Some banks offer more generous terms than others—as your broker, we can advise you which banks offer the longest pre-approval periods. For those looking to buy a house or apartment ‘off the plan’, be aware that your pre-approval will most likely expire before the settlement date, so make sure to include a ‘conditional on finance’ clause in your contract.
The great thing about pre-approved finance is you know exactly how much you can draw down from the bank, which can help focus your house-hunting.
We don’t recommend you seek pre-approval through an online application. In the haste to get approved, information can slip through the cracks and the bank may cancel your pre-approval when they look more closely into your financial situation. Phone approvals are often not much better and mostly just indicate the bank’s willingness to lend. We highly recommend you get a written pre-approval from your bank or lender, to get a firm figure on your borrowing capacity. Some lenders charge a fee for this service but it’s worth it for that extra peace of mind.
Preparing Your Pre-Approval Application
One of the many benefits of using LoanPlan as your mortgage brokers is professional help with your pre-approval application. We meet with you, discuss your property goals, address any credit issues and build an accurate budget. We can then provide recommendations on which lender will best suit your needs and even submit a pre-approval application on your behalf.
So contact us now and get pre-approved!