Dollars & Distractions – Episode 6: Pre-Approval First, Property Second - Why Timing Matters More Than You Think

Episode Summary In this episode of Dollars and Destructions, we’re diving into a topic that can make or break your home buying journey… pre-approvals. We’ve been seeing a growing trend lately, buyers signing contracts before their finance is properly sorted, and honestly… it’s creating a lot of unnecessary stress (for you and for us 😅). So today, we’re breaking down:What a pre-approval actually isThe difference between “quick” vs fully assessed pre-approvalsThe risks of skipping this stepAnd how getting organised upfront can save you time, money, and a whole lot of pressureIf you’re thinking about buying, or even just starting to look, this episode is a must-listen. What We Cover💡 What is a Pre-Approval (and why it matters) Not all pre-approvals are created equal. We explain the difference between:A computer-generated (generic) pre-approvalA fully assessed pre-approval by a lenderSpoiler alert… one of these gives you real confidence, the other not so much.⚠️ The Risk of Signing a Contract Too Early We’re seeing more buyers:Signing contracts before finance is approvedRushing decisions due to competition in the marketBacking themselves into tight finance deadlinesThe reality?You can end up:Racing the clockLimited to certain lendersOr needing stressful extensions just to make things work⏳ Why Timing is Everything Without a pre-approval, your finance timeline starts after you sign the contract. With one already in place:The heavy lifting is doneYou can move fasterYou may even negotiate better contract terms💸 Hidden Risks You Might Not Expect We also talk about things that can come up after you sign:Credit history surprisesChanges in employmentTaking on new debt (like car finance 🚗)These can impact your approval… even if you thought everything was fine.🧠 Confidence Comes from Clarity A pre-approval doesn’t just tick a box, it gives you:A clear budgetConfidence when making offersThe ability to act quickly in a competitive marketAs we say in the episode:Knowledge = confidence📅 How Long Does a Pre-Approval Last?Typically valid for 90 daysOften extendable for another 90 daysUp to 6 months total, as long as your situation doesn’t changeKey Takeaway Even if you’re “just looking”… getting a pre-approval early can:Reduce stressGive you clarityAnd put you in a stronger position when the right property comes along🎯 Your Next Step Thinking about buying but not sure where to start? Let’s have a chat 😊We’ll help you understand your position and get you set up the right way, before you start house hunting.Connect With Us 📲 Follow along for more first home buyer tips📅 Book a quick chat with us to get started - https://link.teamos.ai/widget/bookings/maryanne-elliott-phone-meeting