pre approval home financeThe undisputed best way to go about shopping for your home is to get a bond pre-approved by your bankers or by using a bond originator before you go out looking for a new home. There are a few things to consider when your already have a bond approved.

Attitude of the Estate agent: Estate agents, like anyone who is dependent on financial institutions giving credit to customers in order for them to earn an income have a very different attitude towards a pre-approved buyer.

The agent knows that you are looking for a home and that you essentially have the money available. This is a huge bonus for the agent who will go out of his way to help you spend your money.

The other thing the agent will be very aware of is that you don’t have to spend your money with him/her but there will be other agents out there trying to help you spend it. The result is that once you have made an offer he will do everything in his power to get the seller to accept your offer.

Ability to negotiate: It is currently a buyers market with some areas selling homes for as much as 30% below their asking price. Both the agent and the seller know this and if you amke them aware right at the outset that the offer you make, albeit a low offer, that you are making other offers, the pressure will shift to the seller to accept what he knows is an approved buyer.

There is little as frustrating as accepting an offer as a seller only to find out that the deal has fallen through due to the buyers inability to get a home loan.

Bear in mind when dealing with sellers and Estate agents that they want to sell to you! You are holding the cards when it comes to buying and you will seek out the very best deal available to you. This attitude will make the seller think twice before counter offering and will have thje Estate agent working twice as hard to close the sale.

Be confident when you make an offer, apply for bond pre-approval before you go out on a show day.