Adam from Vista Financial

Mortgage Pre-approval

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    Having a Pre-approval in place before making an offer on a property is a very popular method used by home buyers.

    When starting on the journey of buying a property there are many factors to consider. A major factor is affordability. Knowing how much you can offer for a property can greatly assist in your search. Having a pre-approval in place gives you a clear indication of what you can afford.


    The process of a pre-approval is much the same as applying for a full approval on a home loan. The lender will want to assess your full financial situation.


    The application will be assessed by the banks credit team and you will then be notified of the outcome of your application. If successful a pre-approval is generally then granted subject to a few conditions. Normally the conditions are a contract of sale and verification of your income at the time of submitting the application for a full approval.

    The benefits of having a pre-approval in place are:

    · Knowing your maximum loan capacity

    · Fast tracking the loan process once finding a property

    · Being a more attractive buyer to a vendor and estate agent


    · Having peace of mind that you are eligible for a mortgage



    A pre-approval is not a guarantee that finance will be approved. Personal situations can change between obtaining a pre-approval and having an offer accepted on a property. Therefore, we would always recommend making any offer subject to finance.


    Be wary of advertisements for a pre-approval in minutes. Usually these are indications that you may be eligible for a home loan but these are not fully assessed with a whole range of terms and conditions in the small print which when the time comes could render the approval essentially useless.


    The pre-approvals we put in place for our clients are fully assessed by a credit officer and then once approved gives peace of mind that besides finding a property the mortgage is in place and ready to go. This is subject to no major/financial changes as per the application and thus any offers made are still recommended to be made subject to finance.


    We are aware of people that have missed out on properties as they did not have a pre-approval in place.


    Hope this helps a little bit to explain the process of pre-approvals.


    Kind Regards


    Edited by Adam from Vista Financial

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