2. Get pre-approved for a home loan
Before you begin your search, it’s important to find out how much money you can borrow. You can find this out from your bank or financial institution.
They can then decide if they can offer you a pre-approval. This is when a bank, financial institution or building society, agrees, in principle, to lend you a certain amount of money.
You can contact a mortgage broker or your bank about this.
How much you can borrow depends on:
- The value of the home you are looking to buy
- How much deposit you have
- Your income
- Your ability to repay your home loan after you've paid your outgoings
- The equity you have in your current property or properties.
Getting a pre-approval puts you in a better negotiating position, helps speed up the mortgage documentation process and enables you to bid with confidence at auctions.