The Pre-approval Process

Are you toying with the idea of entering the property market, but not quite sure where to begin or how much you can afford? As a starting point, you may want to consider obtaining home loan pre-approval.

Pre-approval (sometimes referred to as conditional pre-approval or approval in principle) is an indication from your chosen lender as to how much you may be eligible to borrow, subject to certain conditions. The lender provides this indication after assessing various financial factors such as your employment status, salary, credit history, assets and debts.

If you obtain pre-approval, it will be for a certain dollar amount which will help you to set some budget parameters and by extension, refine your property search. Whilst it isn’t a guarantee that your final loan application will be approved, it provides you with a fair indication of your borrowing capacity and allows you to bid with some form of confidence. Pre-approvals are generally valid for three to six months, depending on your chosen lender.

Your MoneyQuest mortgage broker can guide you through the pre-approval process step by step and submit the application on your behalf.

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This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the article is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).

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