Applying for Pre-approval
After months of preparing, this is where your first home journey starts to become real.
It's when you head online, fill in your home loan application, and provide the necessary supporting documents for a home loan lender to assess.
Based on your deposit amount, your income and expenses and other lending criteria, your home loan application will be assessed, and if it's approved, you'll receive a pre-approval for the maximum amount you can borrow.
Getting pre-approved helps you understand your budget and puts you in a position to act when the right property comes along. It’s an important step that bridges the gap between planning and actually buying.
Once you have your pre-approval, it's time to go find your first home!
🏡 Applying for a home loan
If you apply for a home loan with PCU, you'll need to provide:
- 3 months of all your bank statements
- Proof of your home deposit funds (screenshots or statements)
- Your recent payslip
Time to start house hunting!
Once you've applied for a home loan and have your pre-approval, it's time to go house hunting. It helps to be clear about what type of home you're after and to be realistic about what you're willing to spend.
1. Wants and needs
Make a list of what you want and need in your future home to help you decide what types of properties fit within your budget.
Non-negotiables: Make a list of the most important features your home must have, such as the number of bedrooms, location, office space, sunlight, or proximity to work or schools.
Negotiables: Be realistic. Some features may be nice to have, but aren’t essential. Avoid getting caught up in extras that won’t add to the practicality of the home and may only increase costs in the long run.
2. Consider your budget
Now that you've been pre-approved, you know what budget you're working with.
Your pre-approval is the maximum you can borrow, and doesn't mean you need to use it all. Focus on what feels manageable for your budget so you can stay on track with your other savings goals while being able to absorb other costs like maintenance, interest rate changes and council rate increases.
It's useful to visit a range of houses at different prices, and to remember that buying a home at the very top end of your budget means you'll have less money to save and spend on other things.
3. House hunting
House hunting isn't just about finding a place you like it's about knowing what to look for and what you should ask about.
❔ Be ready with questions
Go into each viewing with some questions that matter to you about the property.
You can generate a report that highlights what you might want to question or research further using the Settled Property Checker.
📝 Use a checklist
Take a checklist along and inspect both inside and outside the properties you're interested in, taking notes as you go.
ADD IN A DOCUMENT HERE- THE HOME VIEWING CHECKLIST ONE
TO RECAP...
1. Wants and needs
Figure out your negotiables and non-negotiables so you have a clear vision of what you want your future home to look like.
2. Consider your budget
Once you know your pre-approval amount, revisit where your budget sits so you can search for the right home in your price range.
3. House hunting
Be prepared with questions and to do all the due diligence you can before making an offer.
Next Step -> Offer and Settlement
The fine print
Normal lending criteria and a $100 establishment fee applies to all new loans.