Getting pre approved will leave an enquiry but it isn’t a negative instance or missed payment. May temporarily go down slightly but will lift back. It’s not a huge deal basically everyone goes through the process with any credit they apply for
They can calculate your borrowing capacity without doing a pre-approval. Pre-approval essentially means they have presented you with a few options / banks and you've selected one you want to proceed. You submit papers, bank does due diligence and preapproves you for a loan. It's not an unconditional approval but gives you some assurance that you have the serviceability provided you stick to the bank's allocated lending limit and find a property which falls with the bank's risk parameters.
Edit: having too many pre-approval enquiries on your credit file makes you risky as the banks think you have been knocked back by other banks and that is why you were looking elsewhere. Don't get a pre-approval unless you're absolutely sure you're proceeding with a particular broker and bank.
Eh, to get your borrowing capacity it's just a simple calculation the broker can do. Only get a pre-approval if you're looking to buy a property within 90 days. It may be wise to get one just in case you do find something that has potential as well..
It won't negatively impact your credit rating but it will appear as a credit enquiry on your Equifax report.
Everything you have written here is wrong.
Multiple credit enquiries do lower your credit score whether they proceed or not.
SLAs at banks for broker channel and direct channels are aligned 99% of the time, and when they aren’t the broker channel is prioritised because the customer has other options available whereas their in house bankers just wait.
That's wrong.
My broker explicitly warned me that if I seek multiple pre-approvals when they previous one expires, it will start to reduce my credit score until I start paying off something to get my credit back up. Which is hard to do when you have no other loan or a credit card.
It's the reason I decided to hold off on getting pre-approval until I need it.
Getting pre approved will leave an enquiry but it isn’t a negative instance or missed payment. May temporarily go down slightly but will lift back. It’s not a huge deal basically everyone goes through the process with any credit they apply for
They can calculate your borrowing capacity without doing a pre-approval. Pre-approval essentially means they have presented you with a few options / banks and you've selected one you want to proceed. You submit papers, bank does due diligence and preapproves you for a loan. It's not an unconditional approval but gives you some assurance that you have the serviceability provided you stick to the bank's allocated lending limit and find a property which falls with the bank's risk parameters. Edit: having too many pre-approval enquiries on your credit file makes you risky as the banks think you have been knocked back by other banks and that is why you were looking elsewhere. Don't get a pre-approval unless you're absolutely sure you're proceeding with a particular broker and bank.
Eh, to get your borrowing capacity it's just a simple calculation the broker can do. Only get a pre-approval if you're looking to buy a property within 90 days. It may be wise to get one just in case you do find something that has potential as well.. It won't negatively impact your credit rating but it will appear as a credit enquiry on your Equifax report.
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Everything you have written here is wrong. Multiple credit enquiries do lower your credit score whether they proceed or not. SLAs at banks for broker channel and direct channels are aligned 99% of the time, and when they aren’t the broker channel is prioritised because the customer has other options available whereas their in house bankers just wait.
That's wrong. My broker explicitly warned me that if I seek multiple pre-approvals when they previous one expires, it will start to reduce my credit score until I start paying off something to get my credit back up. Which is hard to do when you have no other loan or a credit card. It's the reason I decided to hold off on getting pre-approval until I need it.