Mortgage pre-approval is the key to property-buying success
PUBLISHED: 10:00 22 December 2016
Having your finances in order is the best way to secure your dream home, according to a national estate agent firm.
Leaders say they have an average of 10 buyers for each property, meaning that they should be able to present themselves as attractively as possible to sellers and agents.
They have released advice on how to get in the strongest position to buy a home, which includes getting pre-approved – being qualified by a mortgage lender prior to starting the search for a place to live.
Kevin Shaw, national sales director at Leaders, said: “A pre-approval is incredibly important as a mortgage provider has analysed a person’s credit history and credit score and given the green light to them borrowing a specific amount.
“Essentially it demonstrates a buyer can afford the amount required, meaning they are less likely to pull out of a purchase, as a result of being unable to raise the funds. This makes pre-approved buyers extremely attractive to sellers.
“It also works in favour of buyers who are able to find out for certain what they can borrow before they start, providing them with greater confidence and allowing them to move faster.”
To help buyers work out their borrowing potential, they should consider the ‘four Cs’ – capacity (ability to make mortgage payments), capital/cash reserves (money, savings and investments to use for a deposit), collateral (the type of home a buyer would like to purchase) and credit (history of paying bills and debts on time).
Kevin added: “Many buyers overestimate the deposit they need to purchase a home and underestimate the amount they may be able to borrow. Talking to an expert is the ideal starting point in any search.”