Preparing for pre-approval
By applying for finance before you find a house, you can be ready to make a quick offer.
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What is pre-approval?
Pre-approval is a lender telling you that they’re prepared to loan you money, providing you meet a few conditions – usually around the value of the house you want to purchase. Getting a pre-approval makes it easier to house-hunt as you know just how much money you’ll be able to borrow.
The pre-approval sets a benchmark for you, but it will always be dependent on you buying a suitable property – which means one that the lender is happy with. It always pays to check-in with your adviser about any specific property you want to buy – get it cleared for purchase before you sign a contract or go to auction.
We can help you get pre-approval for your loan, and going through us means you’ll be more likely to be approved and probably get a better deal – going through a single lender means they’ll only offer you their solution, whereas we can shop around and make sure you secure the right loan for your needs. Apply for pre-approval now.
What you’ll need to have
We’ll do our best to limit the amount of paperwork you have to provide and fill in, but you’ll need to have some things on hand.
- ID – Your passport or driver’s licence.
- Proof of income – Three months’ of payslips or your employment contract. Or if you’re self-employed, your financial accounts.
- Bank statements – The most recent three months’ of transactions on your day-to-day account, where your income is deposited.
- Confirmation of deposit – Bank statements from your savings account, confirmation of KiwiSaver withdrawal, HomeStart Grant approval, or gifting letter.
- Address verification – A bank statement or utilities bill with your name and address on it.
You’ll fill in a form disclosing your assets, debts, income and expenses. The lender will also run a credit check, so it’s a good idea to know what your credit report says.
With all that information we can start the process of getting you pre-approved for a mortgage. If you have all your ducks in a row you can get an answer in as little as three days, but it can take up to a week if the bank wants more information or you’re applying for a low deposit loan.