Conversations with a Pug – Is pre-approval a good idea? |

Conversations with a Pug – Is pre-approval a good idea?




It’s important to get pre-approval for your investment loan so that you know exactly how much you can spend and what your repayments will be.
It won’t cost you a cent and you’ll be able to go out and view properties with confidence. There are a few things to look out for though:
  1. Quick online approvals. Websites that offer super-fast approvals are unlikely to be accurate. You might end up thinking you can buy something that in reality you cannot afford.
  2. Deposit Bonds. If you’ve got equity in another property and limited cash for a deposit, a Deposit Bond is a kind of insurance policy that you’ll pay a 10% deposit on any investment property your purchase. Essentially, your insurance company promises to cover the 10% deposit once you agree on a price. This means you can keep your deposit amount in your account until settlement, which is great for off-the-plan and auction purchases. Always check with the agent whether they accept Deposit Bonds before you buy.
If you’d like help finding a lender that offers reliable pre-approvals, reach out and let’s talk. 

My Very Best To You Always,