Blog

All the latest news, facts and tips from the team at Pioneer Credit Connect

10
Apr 17

What Comes First: The Property Or The Loan?

by Matthew Ikin
What comes first the property or the home loan

What comes first, the property or the loan?

It’s easy to get carried away with the exciting parts of buying a property such as attending home opens and looking at dream bathrooms. Yet it shouldn’t steal the spotlight away from the less glamorous task of arranging finance. Not getting your finance lined up could weaken your position when negotiating the best price for the house and the interest rate of your loan.

The answer? Arrange your finance before you start your house hunting and put yourself in the best position to make an offer as soon as you find “the one”. This process is called pre-approval, where your bank provides approval on a loan amount limit. Keep in mind that you do not have to spend the entire pre-approved amount, it is just an indication of your limit.

Having your finance pre-approved will give you a definitive limit on what you can afford meaning you can make offers with confidence. Imagine making an offer only to find out that your bank won’t approve a loan for the amount you put forward. Ideally, sellers are looking for a fast sale, and by coming to the table with your finance already organised puts you in a stronger position to negotiate.

Want to put yourself in the hot seat when it comes time to make an offer? Get pre-approved with a Pioneer Credit Connect Home Loan Specialist who will compare over 30 lenders. You can focus on finding the right home, whilst we arrange you the best loan.

Apply for pre-approval today