Zoom Finance Blog

I am Pre-Approved. What does that mean?

You’ve heard the term “pre-approved” thrown around when it comes to loans or mortgages, but what exactly does it mean?

When a lender or finance broker tells you that you’re “pre-approved,” it means they’ve taken a look at the information you’ve provided them with—your income, assets, debts, credit score, and so on—and everything’s looking pretty good from their perspective.

While pre-approval is undoubtedly a positive sign, it’s not a guarantee that you’ll walk away with that loan or mortgage just yet.

The pre-approval process is like the first step in a longer journey. You’ve passed the initial screening, but there’s still more to be done.

Your application needs to be submitted to the lender most suitable for your needs. This lender will then conduct a thorough assessment of your financial situation before reaching a final decision.

So, why is pre-approval such a big deal?

Well, for starters, it gives you a solid indication of where you stand in the eyes of potential lenders. Knowing that you’re pre-approved can provide a sense of confidence and reassurance as you move forward with your plans.

Finance Brokers, like the friendly team at Zoom Car Loans, are well versed in the pre-approval process and know the best lenders to send your application to based on your personal situation.

But that’s not all!

Pre-approval also comes with a few perks that can work in your favour:

Clarity and Focus: With pre-approval in hand, you’ll have a clearer idea of your budget and borrowing capacity. This can help you narrow down your options and focus on vehicles that are within your financial reach.

Negotiating Power: Sellers and dealerships tend to take pre-approved buyers more seriously. Having that stamp of approval signals to them that you’re a serious contender who’s ready to seal the deal.

Time Savings: Pre-approval streamlines the buying process by eliminating some of the back-and-forth that comes with securing financing. You’ll spend less time waiting around for loan approvals and more time moving forward with your purchase.

So what does pre-approval mean?

It’s a positive step toward securing the financing you need for your next big purchase, but remember, it’s just the beginning of the journey.

Keep your eyes on the prize, stay patient, and trust the process.

At Zoom Car Loans our friendly finance brokers are generally able to offer instant pre-approval overh the phone and settlement usually occurs within a few days.

Contact us today to get the process started.