Skipping Pre-Approval Leaves 1 in 10 First Home Buyers Empty-Handed

Buying your first home can be exciting, nerve-wracking, and, at times, downright frustrating. It’s not uncommon to spot a property that ticks every box, only to have your hopes dashed.

According to Finder, three out of five first home buyers have missed out on properties they wanted. The main culprit? Being outbid by someone else.

While you can’t control whether another buyer has a bigger budget, you can take steps to put yourself in a stronger position. One of the simplest and most effective is having a home loan pre-approval in place.

Yet Finder’s research shows more than one in ten (11%) first-time buyers lost a home simply because they didn’t have pre-approval ready to go.

Here’s why that’s a big deal, and why it might be your secret weapon in a competitive market.

What Is Home Loan Pre-Approval?

Home loan pre-approval is the process of applying for a mortgage before you start inspecting houses. It allows a lender to review key details like your income, deposit, and savings track record, and then confirm the maximum amount they’re willing to lend you.

It’s like both you and the lender agreeing you’re a match.

The process is typically free, and you’re under no obligation to take out the loan. But having pre-approval reassures you that finance won’t be a stumbling block when you find the right place.

It also sets clear budget boundaries and gives you confidence to negotiate strongly or bid at auction, knowing exactly where you stand.

Why Skipping Pre-Approval Can Cost You

Technically, you could wait until you’ve found the perfect home before applying for finance. But that can be risky.

Lenders need time to assess your application and confirm how much you can borrow. If the seller is looking for a quick sale, a more organised buyer with pre-approval could swoop in before you’re ready to sign.

There’s also the danger of overestimating your borrowing capacity. Without a clear figure from a lender, you could fall for a home outside your actual budget. (The good news is we can help you estimate your borrowing power even without formal pre-approval.)

Bottom line? While not compulsory, pre-approval helps you act fast and with confidence, and signals to sellers that you’re a serious buyer.

Key Things to Know About Home Loan Pre-Approval

There are a few practical details worth keeping in mind:

1. Pre-approval has an expiry date: It’s not valid forever. Most lenders set a timeframe of three to six months. There’s no need to feel pressured. If it runs out, we can assist you with renewing your pre-approval.

2. It’s based on your current situation: If your income, debts, or savings change, it can affect your pre-approval. Let us know so we can update your lender.

3. Not every lender offers it: Policies vary between lenders, so it’s worth speaking to someone who knows which options are available.

Osinski Finance: Your Fast Track to Home Loan Pre-Approval

If you’re not sure where to start with home loan pre-approval, Osinski Finance can help. Whether you’re looking for a home loan, investing in a property, or refinancing your current loan, we’ll guide you through every step. We’ll match you with lenders who provide competitive pre-approval options and ensure you’re ready to move quickly when your dream home becomes available. Don’t lose out because paperwork slowed you down.

Let’s get you pre-approved and ready to make a winning offer. Contact our team today. 

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