4 Reasons to get bond pre-approval before you buy a home

Obtaining bond prequalification will provide you with your credit score, along with a solid idea of what you can afford, before you start house-hunting.

Article summary

  • Prequalification will provide you with your credit score, along with a solid idea of what you can afford.
  • Over 90% of home loan applications with an O-YES Home Loans’ prequalification certificate are approved.
  • You can get prequalified by using O-YES Home Loans’ online tools, or by contacting O-YES Home Loans for a more in-depth prequalification.

Buying a home is an exciting process – from scouring online property portals, to visiting show houses, and finally putting in an offer. It’s a roller coaster ride! But before you even start your house-hunting journey, it’s always a good idea to get prequalified.

What is a prequalification?

Getting prequalified for a home loan means you know your credit score, and what you can realistically afford in home loan repayments every month. It’s not a guarantee of a home loan, but it’s a very good indicator of what size home loan the bank will grant you. This also means that when you set off house-hunting, you are shopping in the right price-bracket for your affordability.

Getting bond prequalification: What are the benefits?

  1. You’ll know what you can realistically afford, so you can start house hunting with the right price bracket in mind.
  2. You’ll know your credit score.Ideally your credit score should be above 600 in order to have your home loan application approved by the bank (670+ is considered an excellent credit score). If you have a low credit score, you should look at ways to improve it, such as by paying your accounts in full and on time, clearing your credit card debt, and closing accounts once you’ve paid the balance owed.
  3. As a qualified buyer, you make your offer to the seller that much strongerby demonstrating that you have done your homework on how much you can afford to pay.
  4. Over 90% of home loan applicationswith an O-YES Home Loans’ prequalification certificate are approved.

How do I get prequalified?

O-YES Home Loans offers a an in-depth prequalification, with the help of their home loan experts. They’ll examine your income and expenses, and of course your credit score, like a bank would, and issue you with a Qualified Buyer’s Certificate.

A prequalification will require you to submit the following documents:

  • Your online prequalification form.
  • Your ID.
  • Your latest payslip (if your income has a variable component ie commission/ variable income, latest six months payslips).
  • Latest bank statement.

The next step: Applying for a home loan

Once you’ve found a home that matches your price bracket, and you’ve made the offer to purchase, it’s time to put your prequalification certificate to good use and apply for a home loan.

Bear in mind that O-YES Home Loans offers a range of tools that can make the home buying process easier. Start with our Bond Calculator, then use the O-YES Home Loans Affordability Calculator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.

Courtesy of OOBA Home Loans