The Pre-Approval Process Explained
Step-by-step guide to getting pre-approved and why it matters for home buyers.
What is Pre-Approval?
Pre-approval (also called conditional approval or approval in principle) is when a lender reviews your financial situation and indicates how much they're willing to lend you, before you find a property. It's not a guarantee, but it gives you confidence when house hunting.
Why Get Pre-Approved?
Know your budget
Search for properties within your actual borrowing capacity
Act fast on properties
Make offers with confidence knowing finance is likely
Stronger negotiating position
Sellers take you more seriously as a qualified buyer
Identify issues early
Discover and fix any problems before you find your dream home
The Pre-Approval Process
Gather your documents
Day 1Collect payslips, bank statements, ID, and other required documents
Submit your application
Day 1-2We review your situation and submit to the most suitable lender
Lender assessment
Day 2-5The lender reviews your income, expenses, credit history, and deposit
Pre-approval issued
Day 3-7You receive conditional approval stating your borrowing limit
Start house hunting
OngoingSearch for properties within your approved amount
Documents You'll Need
Identity
- • Driver's license or passport
- • Medicare card
- • Proof of current address
Income (PAYG)
- • Last 2 payslips
- • Employment letter or contract
- • Most recent tax return (sometimes)
Income (Self-Employed)
- • Last 2 years tax returns
- • Business financial statements
- • ATO Notice of Assessment
Financial Position
- • 3 months bank statements
- • Proof of deposit/savings
- • Details of other loans/debts
Important Things to Know
Pre-approval typically lasts 3-6 months
After this, you may need to reapply if you haven't found a property.
It's not a guarantee
Final approval depends on the property valuation and your circumstances not changing.
Don't change your financial situation
Avoid changing jobs, taking on new debt, or making large purchases during this time.
Credit checks may affect your score
Multiple applications can impact your credit. We minimize this by choosing the right lender first.