National Loans Explains How to Get Pre-Approval on a Loan

MELBOURNE, Australia, Jan. 26, 2022 /PRNewswire/ -- According to National Loans, a leading finance broker offering all types of asset finance including boat finance and caravan finance, pre-approval on a loan is when a lender agrees in principle to lend money before a purchase has been made. Pre-approved finance can speed up the process and potentially save a buyer money.

As National Loans explains, pre-approval is a conditional approval based on the 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 conducted.

During the pre-approval process, a lender will assess the financial circumstances and borrowing power of an individual before giving conditional approval with estimated terms such as the interest rate and maximum amount that can be borrowed. National Loans says borrowers can then use this information to shop with confidence and negotiate the asset price with the dealer.

National Loans says one of the biggest benefits of pre-approval is that it provides peace of mind and confidence for the borrower when shopping around, as they know what their budget is. Being aware of their budget helps borrowers avoid hard sales tactics and also strengthens their negotiating position.

It is worth noting that each time a borrower applies for pre-approval, a credit check is conducted. If a borrower seeks pre-approvals from multiple lenders, it can affect their credit score. It is important for borrowers to work with an experienced loan broker, like National Loans, who will match them with the right lender the first time, saving them time, money and potential hits to their credit score. Additionally, a pre-approved loan is only valid for a limited time, so it pays to start shopping around early.

Providing pre-approval on loans in as little as one hour, National Loans simplifies the finance process. For more information or to apply for pre-approval on asset finance including a boat loan or motorbike finance, contact National Loans today.

SOURCE National Loans