What is pre-approval?

Pre-approval (sometimes called conditional approval or approval in principle) is an indication from a lender of how much they may be willing to lend you. It's based on a preliminary assessment of your financial situation and is typically valid for a set period, often around three to six months.

Why consider pre-approval?

Having a pre-approval in place before you start seriously looking at properties can offer several potential benefits:

Confidence in your budget: Pre-approval gives you a clearer idea of your borrowing capacity, which can help narrow your property search.
Stronger negotiating position: Sellers and agents may view your offer more favourably if you have an indication of finance.
Faster progress: Once you find a property, having pre-approval may speed up the formal application process.

What pre-approval is not

It's important to understand that pre-approval is not a guarantee of finance. It is subject to conditions, which typically include a satisfactory valuation of the property and no material changes to your financial situation. The lender's final decision is made during the formal approval stage.

What's involved?

To apply for pre-approval, a lender will generally assess your income, expenses, debts, and savings. You'll typically need to provide documents such as payslips, bank statements, and identification. The process usually takes a few days to a couple of weeks, depending on the lender and complexity.

Is it right for everyone?

Pre-approval suits many buyers, but it's not essential in every situation. Some buyers prefer to explore the market first before applying. Our team can help you understand whether pre-approval makes sense for your circumstances and guide you through the process if you decide to proceed.

What is pre-approval?