Banks are becoming more stringent when it comes to processing home loan applications, and many buyers fall short in over-promising and under-delivering with their vendor when it comes to buying a property subject to finance. Today, we are going to talk about understanding the terms 'Pre-approval' and 'Approval' when it comes to securing a loan.
Evan Davis, Founder and CEO of Money Cat Finance has over 16 years of experience in mortgage broking and multiple successful ventures in the property development and investment space. Evan specialises in self-employed lending and had a passion for helping Australians realise the great Australian dream of home ownership.
1. What is a pre-approval?
a). What can it allow you to do?
b). How long does it last?
c). What will help you get your pre-approval through faster?
d). What obstacles can make the process longer?
e). If you have a pre-approval is it for a certain interest rate?
f). What do you need to do in the pre-approved time to ensure that if you do need to apply again, the process is easy?
2. What is a conditional approval or an indicative approval?
a). Why does the property need to be valued by the bank to approve the loan?
b). What happens if the bank values the property as less than what we paid for it?
3. When does the loan become an 'approved' loan?
Evan Davis can be contacted by mobile on: 0413 467 246
Money cat has offices in Prahran and Moorabbin.
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