Getting Home Loan Pre-approval

Home loan pre-approval, sometimes also called an approval-in-principle, means getting your home loan approved prior to selecting a property. It is relatively straightforward and something you should definitely get if you possibly can, no matter how much you are intending to borrow. Many banks and lenders offer it and it is usually valid for three months. A home loan pre-approval is similar to full finance approval except that the property to purchase has not yet been determined.

Make sure you get formal unconditional pre-approval

There are many 'versions' of home loan pre-approvals and many are only indications. If you want something you can rely on, what you are looking for is unconditional pre- approval. It will typically cost you some money in processing and assessment fees, but is the only way to get true pre-approval which allows you to negotiate with confidence or bid at auction under pretty much the same conditions as a cash contract.

Remember your Valuation still needs to stack up

Once you have found the home you want to buy, bear in mind that your valuation will still be a condition of your approval. In slower real estate markets, valuations can often come in lower than you might expect. If you are intending to buy at auction or sign a cash contract, it is highly advisable to get the property valued prior to the auction or signing, through the lender you intend to go with.

More Information on Home Loan Pre Approval

For more information on home finance in your best interest, simply fill in a contact form and we will have a home finance broker in contact with you within two business hours. Alternatively, call us at any time on 13LOAN or for overseas callers +61 2 90188417.