How Often Should You Review Your Mortgage? It Might Be Time!
February 12, 2020

How and Why to Apply for a Home Loan Pre-Approval

The New Zealand housing market is getting busier every day, and the news all around is talking about how median prices are on the rise. These frightening forecasts can be off-putting at first, but there’s still hope for finding your first home in NZ. In fact, getting a mortgage and working with a mortgage adviser are great ways to buy a house anywhere across the country.

There are a lot of active buyers in the market right now, and many of the biggest properties are being snatched up. However, for everyday Kiwi families, applying for a mortgage pre-approval can give you an edge up and allow you to secure your property without delay.

Here’s everything you need to know about getting a mortgage pre-approval so you’re ready to buy.

 

Why Should I Get Pre-Approved?

Technically speaking, there is no hard rule saying you have to get home loan pre-approval. That said, when your home loan is sorted before you start searching for a home, it opens up several exciting doors.

Pre-approval is basically an indication where the bank is saying how much you’ll be able to borrow up front subject to certain conditions, letting you go to house sales with a clear idea of exactly how much you can ultimately spend. It gives you a price range to work off and saves you time looking at housing options outside of your budget.

Additionally, as a peace of mind, having a pre-approved mortgage lets you make a conditional offer on the home you want without waiting – which could lead to you missing out to another buyer. For all the potential headache and stress that it saves, we think a home loan pre-approval is key.

 

How Can I Get Started?

Come talk to one of our friendly team to engage with our mortgage services. We’re here to take you through the process and make it as smooth as possible. Some of the things we’ll touch on with you include:

 

  • Reviewing Finances

This is where we consider your typical expenses against your income and how much you could reasonably afford to pay back against a mortgage.

 

  • Look at the Different Types of Home Loans and other Options

As a first home buyer, the mortgage world can be very new game for you. There are few basic things you need to know about mortgages to begin with e.g. types of mortgages, their unique benefits and features e.g. Fixed, floating rate and others, the current interest rate and more. We’ll discuss different options with you so that you can start digesting that information and start working on some numbers in the meantime so that you can make informed decision down the line what product mix suits your financial needs and circumstances.

 

  • Fill in the Pre-Approval Application

We’ll help you fill out your pre-approval application to ensure that the information you submit is correct and which bank’s lending policy it potentially is going to fit in.

At the end of the day, a mortgage pre-approval is all about peace of mind when you need it the most. Contact our team whenever you’re ready, and we’ll help you get into your dream home without unnecessary delay.

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