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Why first home buyers need a Pre Approval

Competition for property can be fierce. Put yourself ahead of the pack with a pre-approved loan.

Whats pre-approval?


Sometimes referred to as an approval-in-principle, pre-approval is a general indication of how much you’re able to borrow based on the information you provide to your lender.

Although subject to terms and conditions, a pre-approval basically gives you the green light on your home loan even if you’ve not yet decided on a particular property.

The amount of the pre-approval is usually determined by your ability to meet the loan repayments.

How long is a pre-approval valid for?

Most pre-approvals are valid for up to three months (90 days).

Banks are often happy to extend the length of the pre-approval via an extension request. Often the bank will ask for refreshed copies of:

  • Payslips (usually the last 2)
  • Your latest deposit account statement; or
  • Loan account statement (if using equity in a home)

Just remember even with your pre-approval, your purchase must still meet all of your lender’s requirements prior to obtaining Unconditional Approval.

Why obtain pre-approval?


Peace of mind

A pre-approval gives you the confidence of knowing how much you can borrow when buying a property.

Ability to bid and make offers

Under the conditions of a cash contract, a pre-approval allows you to bid at auction for the property of your choice. However, you will be responsible to meet the rest of your obligations under the contract if unconditional approval is not obtained. You should seek advice on the contract before bidding at an auction.

Jump the queue

Your home loan pre-approved enables you to seize the opportunity and act quickly when you find the property you want.

Stronger bargaining power

A pre-approval can sometimes help you negotiate a better price with the seller, especially if there are fewer stringent conditions upon the sale.

Whats next?

Make an appointment with us

Make an appointment to speak with us about what you are looking to do. This also gives you the ability to ask as many questions, drawing on our expertise in finance and the property purchasing process. 

We can help you with:

  • Assessing lenders and selecting the right fit – including all the main banks and many niche and value lenders.
  • Comparing these lenders and producing a recommendation of at least 3 ideal lenders.
  • Arranging CoreLogic professional valuation reports to guide you on offer prices and current market and suburb values. This is the same system real estate agents use for valuations.
  • If you already hold property, we arrange bank valuations on those properties to determine value and your equity position.

Don’t risk your credit score!

To minimise the risk of a declined application and wasting precious time, we carry out a pre-qualification to ensure that we target a lender and a loan amount that is realistic and that will stand the best chance of being approved.

At the appointment, we will use your information to calculate an approximate borrowing figure, and outline the steps that we will take to get a pre-approval in place for you


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