Prequalify for a home loan & increase your chances of approval

Article summary

• Prequalification improves your chances of home loan approval.
• It also provides an estimation of what you can afford, allowing you to house hunt with confidence.
• You can get prequalified quickly and easily with our free, online tool or by contacting us at ooba Home Loans.

Applying for a home loan can be a nerve-wracking process as home buyers wait to see whether their application will be approved. To mitigate the stress, one should do anything they can to increase their chances of approval.

Fortunately, we provide a way to improve your chances significantly. Through pre-approval, you can effectively have your home loan approved before you actually apply for it.

What is prequalification?

A process by which your financial situation is assessed by a home loan comparison service in much the same way the bank would do. You then receive valuable information about your credit record, your chances of home loan approval, and the amount you can likely afford.

Benefits of prequalification:

• You find out your credit record; the most important factor that banks take into account when assessing your home loan application. A credit record of at least 610 is needed to have a chance of home loan approval.
• You find out what you can afford, enabling you to hunt for houses within your price range.
• You receive a prequalification certificate that will show the bank your financial situation has already been assessed and deemed satisfactory.
• 90% of home loan applications that have been pre-approved by ooba Home Loans are approved by the bank.

How do you prequalify for a home loan?

You have two options available to you:

• Use our free, online tool, Bond Indicator. All you have to do is register online, enter your income and expenses, and within a few minutes you will be given an estimation of what you can afford.
• Contact us and you’ll be put in touch with a home loan expert who will guide you through the prequalification process. You’ll have to submit a signed prequalification form, your ID, your latest payslip, and your latest bank statement.

What if you fail to prequalify?

At least you’ll know what you need to do before applying for a home loan with the bank. For example, applications are usually rejected because the credit record is too low. We can help you improve your credit record.

Prequalification takes some of the weight off your shoulders and streamlines the home loan application process. It’s highly recommended to get prequalified before you commence the house hunt, as you’ll save yourself time and resources and be better prepared for what will be an important financial decision.