What is a pre-approval certificate?People interested in buying a house can approach Mortgage Plus Bond Originators who will check their credit, verify their income and then assures them that they would be able to get a loan up to a certain amount. They receive a pre approval certificate for the specific amount, but unfortunately a pre-approval is still not a guarantee that the loan will be provided, taking into consideration that a pre-approval is valid for 90 days and lender’s finances (income and expenses) as well as interest rates might change during this time.

Why do you need to be pre-approved?

A pre-approval certificate can be worth a fortune for home buyers. Most real estate experts will advise home buyers (especially first-time buyers) to apply for a loan before shopping for a home. By getting a pre-approval for a home loan you will speed up the buying process and with a pre-approval certificate in the hand, agents and sellers will take you seriously when knowing that you are financially secured. The pre approval gives a guarantee to the seller by ensuring you a good standing in the market as a honest buyer with credibility.

Advantages of pre-approvals include the following:

• Saving you time
  Today, time is money. A pre-approval can save you a lot of time in many different ways. You will not waste your time by looking at homes you can’t afford.
• Narrowing Down your Home Search
  It makes your task of house hunting easier and faster by eliminating houses bigger than your budget. The time you save can rather be spend on checking the details of the houses that you can actually afford.
• Adding Bargaining Power
  A buyer with a pre-approval is usually more favored by the sellers than a buyer without one. Sellers are more likely to accept your purchase offer, putting you ahead of other buyers, increasing your bargaining and negotiating power. By knowing that you are really serious about buying the home, a seller gets some peace of mind and might offer you some discount or additional benefits to seal the deal.
• Quicker Loan Disbursal or Processing Period
  Buyers with a pre-approval will have the benefit of a faster loan processing period, again saving you some valuable time. The lender can expedite the processing procedure of your loan application without a window period and immediate instructions for appraisal, smoothing down the home purchase process.

Loan approval is generally the longest contingency to fulfill in the home buying process, therefor a pre-approval certificate is advisable. The certificate will give you the confidence you will need for negotiations with the seller as well as the real estate agents.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za