Stephanie Cook - Mortgage Choice
Investors looking to purchase at auction need to ensure their loan pre-approval is 'worth the paper it's written on'.
The best thing that investors can do before an auction is make sure that they've got a conditional approval that's really solid. Sometimes the pre-approvals you can get through various lenders aren't really worth the paper that they're written on. And you may find that if you think you have a pre-approval, often when push comes to shove, you've found out that you've been successful at the property auction, you may find that pre-approval wasn't as solid as it could've been. And by that I mean the lenders don't always run the applications through their credit system, their credit decisioning system. Sometimes it's purely an automatic decision the computer spits out and that's not solid enough to go to an auction.