When purchasing a new home or investment property you may wish to put a pre approval in place. This will give you the comfort that the bank as already reviewed your finances and accepted your current financial circumstance. Without a Pre Approval, you are not able to bid at Auction and in some circumstances vendors may choose not to accept your offer, and you could also have difficulty purchasing off the plan.  

Depending on which Lender you decide to go with will determine the period of time your Pre approval will last for, most lender are 3-6 months, However, continue to extend your Pre Approval every 3-6 months if needed.

You may not buy immediately, therefor even with a pre approval, things can change in your personal life and financial circumstance.

We advice only placing a Pre Approval if you are actively looking as every time you extend your Pre Approval, the lender will require a credit check.

It's important to note, whilst you hold a Pre Approval, you are still required to have a financial assessment again at the time of purchase to ensure you haven't had any dramatic changes to your income. 

Here are some examples of life style and financial changes that will effect your Pre Approval:

  • Increased purchasing Habits (Uber Eats, Afterpay and other)
  • New credit facilities (credit cards, personal loans, car loans and other)
  • Pregnancy/ Additional children
  • Change to employer or employment
  • Casual Employment Change
  •  Or any other change to your personal financial circumstance