When to get preapproval?
Hi,
My husband and I are looking to buy. Ideally early next year so we can save a bit more, but I think we could manage something sooner and have seen some suitable properties in our preferred area. Currently renting and have 6 months left on our current lease.
We asked our broker about preapproval and he said it wasn't required, it is more for piece of mind. He also said that if we don't buy in 90 days then we have to do it all again. We have a rough idea of our borrowing power, but I'd prefer something more precise. Also I am not keen to buy at auction, but would like to be able to consider putting in an offer on a property if it passed in (which some of the ones I have been watching have done).
I'd like to know:
Is there any downside to getting preapproval and having it lapse?
When is the best time to get preapproval if you aren't sure when you are going to buy?
We are in Victoria
edit: we are also first home buyers planning on using the 5% deposit scheme.