What is a home loan pre-approval and how do I get it?
Pre-approval is based on your ability to repay a loan. It means that a lender has reviewed your application and determined that you’re in a good position to be able to pay back a loan for a specified amount.
Pre-approval means that you can search for a home knowing how much the bank is likely to be willing to lend you. It allows you to narrow your search to homes that are within your budget, and to make offers that you otherwise may be unable to.
Bear in mind that, if you make an offer on a property when you’ve received pre-approval, it’s a good idea to stipulate that the offer is subject to receiving final approval.
Note: The conditions that apply to any pre-approval, which can include things like obtaining insurance on your potential new home, or arranging a property valuation.