So, you’ve made the commitment: 2021 is a property-buying year! Unsurprisingly, that’s a common goal for the new year I’m hearing from clients. After all, when will rates be this low again? And with changes to lending due to occur in March, the home loan opportunities for buyers are ripe and ready for the picking. Plus, the 60 lenders I negotiate with are eager to please and ready to compete for your home loan. After making a mental commitment to buying a home, inevitably, the first thing prospective home buyers do is start window shopping online or with their local real estate agencies. And this is what you’ll probably do: you’ll look at the homes available, consider the prices, sort through the spectrum of off-the-plan to delightfully old, superbly renovated or requiring some TLC. Then you’ll start to factor in what you’d be happy to go for (is a pool a necessity? Maybe not) and what is non-negotiable (a walk-in wardrobe and a dishwasher, please), and you start mentally preparing for the big buy.

Hold up! You’ve missed a step.

There’s a critical phase to house-hunting online and in the real world that puts you in a position of power. It’s called pre-approval and it’s free, lasts at least three months and gives you a clear guide on property prices in your buying range. Not having it can cause all sorts of headaches, like discovering you can’t borrow the amount you need for the property you love.

What, precisely, is pre-approval?

Put simply, it means a lender has indicated that they would be prepared to lend you a certain amount of money with which to buy property. It means you can accurately fix the settings on your property search portal to the maximum amount you’re likely to be lent. And if you did find a property you like, you’d be in a position to make an offer. You’ll also be more attractive to sellers because you’re “good to go” and you won’t make the mistake of falling in love with a $900,000 stunner when you’re likely to be lent $700,000.

Seven steps to getting pre-approval

1. Book in to see me so we can get the property party started
2. I’ll review your fiscal footprint (credit history and financial situation)
3. I’ll work out your capacity regarding repayments (how much you comfortably can afford to repay)
4. We’ll cross reference your needs with 60 banks and lenders and their various loan types
5. We’ll settle on a lender who is a good match for your plans and position
6. You’ll leave with a number to start home-hunting intelligently…
7. And that number is valid for up to half the year!

Make your resolutions a reality with pre-approval today.