January 16, 2018

Home Loans: The Benefits Of Pre-approved Finance

home loans make accessibility to finance for the first time home buyer – no pun intended – a living reality. the dream of owning your own home draws even nearer with a pre-approved loan from an institute offering such a facility. such an approval based on a sound credit assessment will save you valuable time when concluding an actual purchase and sale.

the benefits of applying for pre-approved finance allows you to firstly have a clear understanding of how much financing you have at your disposal, and secondly gives you bargaining power when negotiating with prospective sellers. banks that don’t offer pre approved finance on home loans will normally still provide resources such as simple but effective bond and loan calculators available online, which allow clients to gain a preliminary understanding of their affordability and prospective loan qualification amount.

to real estate agents and sellers, pre-approved loans offer great peace of mind. they indicate that the buyer will most likely acquire the necessary financing and that the deal is virtually guaranteed. it also confirms the commitment of the buyer and as mentioned a lot of processing time is saved when you have a pre-approved certificate on hand.

obtaining pre-approved finance when deciding to purchase your own home may not expressly guarantee you a home loan, but it does place you in a favourable position. the preapproval acts as a benchmark and enables you to remain within your budget and make a decision based on selecting from a pool of homes that you can afford.

the application process is typically the same as when applying for home loans as usual and may take several days. in granting you pre-approval, a financial institution has in principle accepted your application for finance. you would have to meet the same requirements such as a good credit record and the ability to meet the loan repayments. once successfully obtained, the certificate is normally valid for between three and six months from the date of issue. however, once the property is identified and a deal is being concluded there will still be some degree of due diligence or final ratification in order to ensure the deal is still sound from the perspective of the lender.

sought after property is often quickly snapped up and with pre approved home loans in hand, it is less likely that purchasers’ dream homes will slip out of their grasp. so, why not get ahead by considering a pre approved option? when it comes to expert facilitation, it’s best to work with a proven expert. visit www.approved.co.za for professional assistance with home loans, personal loans, debt consolidation and much more!




IMPORTANT: We do not give out financial advice. We operate an online referral service and we forward on all your requests and applications to qualified licensed third parties with whom we have pre-arranged agreements. You will deal directly with these advisers. We may also receive remuneration or commissions from these third parties for referring you to them. Remember to seek independent financial and legal advice from a qualified person before entering into any binding financial transactions.
Disclaimer | Privacy Policy © Approved Financial 2005 - 2012.