Two people meeting with an adviser across a table

Pre-approval

Get pre-approved and in the game from the get-go

What is pre-approval?

Pre-approval, also known as conditional approval or approval in principle, is a preliminary step in the loan application process where a lender assesses your financial situation to determine how much they might be willing to lend you. This process is common when looking to finance a home purchase and can be a valuable tool in the property buying journey.

Key Features:

Indicative Offer
Pre-approval provides an estimate of your borrowing capacity based on the financial information you provide to the lender.

Confidence in Property Search
With a pre-approval in hand, you can search for properties with a clearer idea of your budget, allowing you to make offers with greater confidence and be a more attractive buyer.

Time-Saving
Pre-approval can expedite the formal loan application process once you have found a property, as some of the financial vetting has already been completed.

Validity Period
Pre-approvals are usually valid for a set period, often around 3 to 6 months, giving you a timeframe to find and secure a property within budget.

Considerations:

Conditional
Pre-approval is conditional and does not mean final approval; it is usually subject to a satisfactory valuation and verification of your financial information, such as a satisfactory property valuation and verification of financial information.

Credit Checks
Pre-approval typically involves a credit check, which can impact your credit score, especially if you make multiple applications within a short period. It’s important to keep this in mind.

Changes in Circumstances
Any changes to your financial situation or the lender’s criteria can affect the final approval, so it’s important to maintain financial stability during the pre-approval period.

Market Changes
Interest rates and lending policies can change, potentially impacting your borrowing capacity or the terms of your eventual loan.

Speak to us

What we do around a pre-approval

Before we lodge

We go through your income, debts and credit limits so the lender sees an accurate position, and we recommend lenders whose policies may suit it.

While it is in place

We tell you when it expires and what could undo it, such as a new job or a new debt.

When you find a property

Send us the contract before you sign. We check it against the lender’s rules and your finance dates, and your conveyancer advises on the contract itself.

A pre-approval is conditional, and the lender makes the final decision. To get one started, book a time with a broker or contact us.