By getting pre-approved for a home loan you could speed up the process of buying a new house. Real estate agents and sellers will take you more seriously because you are financially secured.

The pre-approval process:

Selecting the correct Mortgage Originator

Bond originators issue letters of pre-approval and can help you to save time when locating a good lender. The best way to find a suitable bond originator is by researching and comparing them through the Internet. It can be very advantageous to use online services to secure a home loan.

Providing the Bond Originator with required information

The selected bond originator will require certain information that is essential for completing the pre-approval process. This information will enable the bond originator to determine your ability to pay the monthly bond instalments.
Most financial institutions require three to six months payslips or bank statements as proof of income as well as a list of monthly expenses. High debts will increase their risk and therefor increase your interest rate.

Credit rating before pre-approval

Before issuing a letter of pre-approval the bond originator will do a credit check which will provide them with information on your amount of credit inquiries, credit accounts and blacklist-status. The pre-approval will be based on your credit scores and your ability to pay the monthly instalments.

A clear credit record and a high income with low debt will place the purchaser in a position to negotiate a good interest rate.

Although pre-approval does not guarantee a home loan, it will serve as an indication for the seller that the applicant in all probability will qualify for the required financing.