Hi guys,
Bit of a basic question. But I am first home buyer looking for our first home mortgage.
Trying to find best possible deals on mortgage and trying few banks / brokers to get a pre-approval.
Is there any disadvantage of getting a multiple pre-approval from different banks? dose it affect your credit ratings?
Esp if you're using a broker, u shouldnt need multiple applications. They'll help u select ONE and if u want, take the preapproval for that one.
Broker should also guide you as to how successful you'll be in that application, or suggest others if they don't think ull get approved.
Not sure how valuable it will be having multiple brokers. If you're testing the market, ask them for their top x number of recommended lenders and why. U can do the comparisons that way without actually applying
Please note that pre-approvals does not mean finance is guaranteed, there are more checks in place once you present the property you wish to purpuse, eg the bank's valuation vs what you are paying/lending.
Pre-approval only gives you the confidence and a range of price that you can go for. It does not mean that you have to get the final loan from them. When u find the house you are looking for, then it's the time to shop around, negotiate and get the best deal. I did the same thing in December. Ended up getting the loan from citibank where as the Pre-approval was from bank west. Do Not apply to multiple banks for Pre-approval as it shows up in your credit files that all the banks can see. Just make sure you have necessary Pre-approval to cover your purchase including your savings and that you have 90-90 days settlement.
called nab once they did a pre-approval for me but I never when ahead with the loan paid cash instead. they never told me that there would be a credit check entry made which remained on my file for many years affecting my future credit applications as they all though I had a home mortgage. so beware only apply for a loan or get preapproval when you have found your dream home and are ready to proceed.
Yes. It will show up as credit inquiry in your credit file.