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.