Pre-approvals are tools that you can use to ensure that you get the best offer for your loans. This allows you to have a better perspective of what you can or cannot borrow depending on the conditions. But, is it really that important to get a pre-approval?

Transactions take less time to consummate as real estate agents treat you more seriously knowing that you’ve done the necessary steps and that you are ready to buy. As a home buyer, you also have bargaining power as vendors are more likely to accept a lower price knowing that you have the financial capacity to purchase.

Here are some of the common requirements for pre-approval:

  • Bank statements
  • A minimum of 3 – 6 months savings history
  • 100 points of identification
  • Proof of assets
  • Employment payslips and other verification
  • Tax returns for self – employed individuals
  • Other proof of income

Getting a pre-approval is a powerful tool that you can use that will benefit both the buyer and the seller. Pre-approval allows you to verify if the loan fits your current financial standing.

Read more about this on the Property Observer website.

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Dorian Traill is the current Director of Grand Capital Finance Group and Fountain Property Group. He specialize in home loans for people as well as helping them build wealth through quality investment properties that ultimately lead to long term financial freedom.