Being prepared in advance gives you a head start to ensure that your property purchase and the loan process runs as smoothly and quickly as possible. Having your financing in place also gives you an advantage to move quickly as you negotiate your purchase.
A pre-approval from a lender is an understanding of the amount of funds that you will be able to borrow for your home loan. It is not a promise of funding as the pre-approval is subject to conditions, one being acceptance of the security being offered and the value of that property.
Conditional preapprovals are generally valid for up to three months with some lenders allowing 12 months. Final approval is commonly subject to:
- Providing the lender with acceptable and adequate security
- Verification of the information you provide in your formal home loan application (including your identification, where necessary, and employment and income details)
- Completion of satisfactory credit checks
- Further credit assessment, if necessary