A prequalification takes away the stress of not knowing how much you can afford and frees the buyer to focusing on looking for their new home.
How much can you afford?
Many people searching for homes don't know how much they can actually afford.
Bond brokers or originators can provide a bond prequalification before an offer to purchase. This takes away the stress of not knowing and frees the buyer to look for properties they know they can afford.
Advantages of a prequalification
- Buyers can save time by focusing on the homes they can afford
- Find alternative funding, once you know how much you can afford you can get a realistic picture of your future home. This means you decide what you are willing to compromise on. Doing this earlier in the process allows you to find the best property for your money.
- A stronger negotiating position, sellers are more interested in the offers from buyers who they know can afford to buy their home.