As National Loans explains, pre-approval is conditional approval based on information provided to the lender. Unconditional approval is then provided once all documentation has been received by the lender and a final credit assessment has been completed.
During the pre-approval process, a lender will assess an individual’s financial situation and borrowing capacity before giving conditional approval with estimated terms such as interest rate and maximum amount that can be borrowed. According to National Loans, borrowers can then use this information to buy with confidence and negotiate the price of the asset with the dealer.
One of the biggest benefits of pre-approval, according to National Loans, is that it gives the borrower peace of mind and confidence when shopping because they know what their budget is. Being aware of their budget helps borrowers avoid hard selling tactics and also strengthens their negotiating position.
It should be noted that each time a borrower applies for pre-approval, a credit check is performed. If a borrower requests pre-approvals from multiple lenders, it may affect their credit rating. It’s important that borrowers work with an experienced loan broker, like National Loans, who will connect them with the right lender the first time, saving them time, money and potential impacts on their credit score. . Plus, a pre-approved loan is only valid for a limited time, so it pays to start shopping around early.
By providing loan pre-approval in just one hour, National Loans simplifies the funding process. For more information or to request pre-approval on asset finance, including boat loan or motorcycle finance, contact National Loans today.
SOURCE National Loans