APPROVAL IN PRINCIPLE
Having approval in place before negotiating or bidding on a property can substantially reduce risk and stress.
Approval in Principle (AIP) is a confirmation from a bank that they will lend you up to a specified amount, based on the financial evidence supplied.
A good broker will be able to quickly assess all lenders and recommend one that will let you know your maximum borrowing power and get you an AIP in advance of bidding on a property.
WHAT'S PRE-APPROVAL?
An Approval in Principle (AIP) is also known as “pre-approval” and it is always subject to a bank valuation on a property. This is to ensure that you don’t over-bid on a property, simply expecting the bank to lend to a buyer regardless of the true value.
In general, an AIP gives the buyer peace of mind going to an auction that they can purchase a property even though they may not have decided yet on which one.
To get a pre-approval, you will need to supply proof of ID, employment, payslips, bank account details for at least 3 months and various other documents as per the Loan Document Checklist.
HOW DO YOU GET PRE-APPROVAL?
To start the pre-approval process you’ll need to give your mortgage broker some key documents.
These should include proof of identity, details of your income – such as a letter from your employer or copies of your pay slips – and details of any assets you own.
Other paperwork might include details of bank accounts for at least 3 months, existing loan commitments and limits on credit cards.
Once the pre-approval is given, getting Full Approval – also known as Unconditional Approval or Formal Approval – is much easier.
WHY OBTAIN PRE-APPROVAL?
Certainty over affordability – you will know exactly what your limits are and you can calculate in advance the monthly repayments.
It saves time – knowing your limits will not only remove doubt over affordability, but will also help eliminate searches in areas and properties that you would otherwise have wasted time viewing.
More bargaining power – knowing your limit will enable you to make better and more forceful bids at auction or negotiating time.
Avoids auction risk – in NSW property auctions, most bidders must sign a waiver of their cooling-off period to be allowed bid by the Vendor. This means that the full 10% deposit is usually at risk if the loan cannot be approved to purchase. Having an AIP in place before bidding can substantially reduce this significant risk and stress.
TALK TO US, AND GET YOUR PRE-APPROVAL READY!
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How much can I borrow?
LOAN REPAYMENT CALCULATOR
What will my repayments be?
LOAN COMPARISON CALCULATOR
Which is the cheapest loan?
PROPERTY BUYING COSTS CALCULATOR
What are the buying costs?
STAMP DUTY CALCULATOR
How much is the Stamp Duty?
COMPARISON RATE CALCULATOR
How can I compare loan rates?
THE BEST CALCULATOR IS YOUR BROKER
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TESTIMONIALS
READ WHAT THEY SAY ABOUT US
HIGH STANDARD OF PROFESSIONALISM
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Thanks so much to Australian Mortgage Corporation for the support in finding the right loan for our needs. Not only are we realising our dreams of building our own home thanks to you, but you listened to our intricate details and met every expectation with a high standard of professionalism. We can’t speak highly of you enough.
Thank you!
VERY HELPFUL & TRANSPARENT
⭐️⭐️⭐️⭐️⭐️
Gordon is a fantastic mortgage broker. He has been very helpful and transparent with me, through my journey to acquiring my first property. He has provided me with plenty of advice to ensure that I am getting the best deal out in the market and to use the strategy that fits my financial criteria. Very professional and friendly. I will certainly seek Gordon’s help again in the future.
LOOKS OUT FOR HIS CLIENTS
⭐️⭐️⭐️⭐️⭐️
We were introduced to Gordon through a friend a few years back. We have used Gordon’s services on a number of occasions for our investment properties and our home, and he has always been easy to deal with and kept us informed throughout the process. A very professional broker who looks out for his clients. I would recommend Gordon’s services to anyone.
KEEP REPEATING WHAT YOU DO
⭐️⭐️⭐️⭐️⭐️
We would like to say that we are speechless but rather we are thankful so much for your kindness today and all your work throughout the process. It could not have come at a better time. Congratulations on your achievements, this excellence is a result of not an act, but a habit, so keep repeating what you do.
SAVED ME MONEY & TIME
⭐️⭐️⭐️⭐️⭐️
I highly recommend working with Australian Mortgage Corporation if you’re considering a home, investment or car loan. Australian Mortgage Corporation saved me a lot of money, guesswork and runaround by letting them take care of the whole process.
EXPERTISE AND PROFESSIONALISM
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I recently purchased a property through my SMSF. Thanks to Australian Mortgage Corporation and Gordon for expertise and professionalism at every level. I bought a property I never thought possible.
HONEST, PROFESSIONAL & FRIENDLY
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You don’t find many honest, professional, friendly finance guys concentrating on service these days. Gordon is one of the one “percenters” for sure. Highly recommended.
GENUINE INDEPENDENT ADVICE
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Thank you for all your help with everything – you were fantastic! I didn’t know there were so many options available and so few people able to give genuinely independence advice. Looking forward to working with you again on an investment property strategy.
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