Preapprovals! What are they? How long do they last for? and can you renew them?

Matthew Dawe Mortgage Broker & Financial Adviser here, and I'm going to tell you why Preapprovals are a fantastic thing to have.

So what is a Preapproval? A Preapproval is where you submit your supporting documents to a lender, and a lender makes a credit decision and issues you a formal letter of offer or a ''Preapproval'' for a particular loan amount.

This can be the most difficult part of purchasing a home, because without the lending you cannot purchase.

The Preapproval will have certain conditions on it, such as reducing a credit card limit and the lender must also approve the property that you are buying. A Preapproval is fantastic to have because you know when you have got it, your good to go.

So how long do Preapprovals last for? Generally a Preapproval will last for 3 months, however for a turnkey property such as a new build property or a construction loan sometimes they can last 12 months. After the 3 months is up, you can roll them for a further 3 months. Keep in mind its been 3 or 6 months at that point since you have submitted your supporting documents so that's a pretty generous period of time to find a home.

As you can see a Preapproval is fantastic to have, it enables you to know you have got the lending and you are good to go.

So when you are ready there are 3 ways you can get in touch with us

You can book a free Strategy Session consultation from our website where we can discuss your situation and talk about next steps. You just go to www.matthewdawe.com and click on the 'Contact/Book' page and you can book a free Phone, Zoom or Physical meeting with myself

Also at our website we have a 'Vault' where we have lots of informational videos like this to help you.

Also you can like us on our Youtube channel & our Facebook page for more free updates. Look forward to talking.

Matthew Dawe

Mortgage Broker | Financial Adviser

Phone: 027 321 4287

Email: mortgages@matthewdawe.com

Facebook: https://www.facebook.com/AucklandMort...

Book a free consultation: Click Here