- In Bee Savvy - Getting the most out of your loan, First things first - Steps before applying for finance
It’s great to get a pre approval in place before you buy a property. It’s not always easy to be confident with your pre approval though. There are some varying degrees of approval.
Why you need to check if your pre approval is valid
One issue is whether your pre approval has been fully assessed, or only computer generated. However, there are other factors to be aware of besides this.
You will of course be approved to borrow a certain amount, depending on what you would like to do with the property, how much you earn, and how much you have for a deposit.
But where you are buying can also affect your approval.
Are all properties considered equal?
Most people are aware that a valuation is a crucial piece when finding a property they require a loan for. But even if the valuation amount matches your purchase price, there may still be restrictions on how much you can borrow, even when you are pre approved.
There may be a difference in how much you can borrow depending on the type of property you are going to buy. A house versus a unit or a townhouse, could have different loan to value amounts applied.
This is generally due to the size of the property, or commonly, the location and postcode.
Thinking of buying and want confidence in your pre approval?
Are you looking to buy a home to live in or an investment property?
Bee Finance Savvy is here to help buyers navigate the complex world of lending, and find the home loan that’s right for them.
We will speak to you in depth about your desired property and your goals.
If you’d like an up front, no obligation consultation, why not speak to our savvy broker Desiree. Desiree is here to answer all your questions, and help you on the way to achieving your property goals.
If you’d like to hear from just some of our satisfied customers, take a look at our reviews on WOMO https://www.wordofmouth.com.au/reviews/bee-finance-savvy-miranda