By Mary Nebotakis, B. Eco, Dip. Financial Services, Managing Director, Natloans
Buying a home is one of the most exciting — and significant — financial decisions you’ll ever make. But before you start attending open inspections or putting in offers, there’s one smart step that can make the process smoother and give you a real advantage: getting a home loan pre-approval.
At Natloans, we help Australians secure the right finance for their property goals. Here’s a clear guide to understanding what a pre-approval is, why it matters, and how to get one.
What is a Home Loan Pre-Approval?
A home loan pre-approval — sometimes called conditional approval or approval in principle — is an indication from a lender that you’re eligible to borrow up to a certain amount for a home loan, based on a preliminary assessment of your financial situation.
It’s not a formal loan contract, but it’s a very useful signal of how much you can likely borrow. Most pre-approvals are valid for 60 to 90 days and are subject to conditions, such as a satisfactory property valuation and no major changes to your financial circumstances.
Why Should You Get Pre-Approved?
1. Know Your Budget
Pre-approval gives you clarity on how much you can borrow, so you know what properties are realistically within your price range. This helps narrow your search and avoid wasting time on homes outside your borrowing power.
2. Strengthen Your Offer
In a competitive property market, a pre-approval can make your offer more appealing to sellers and agents. It shows you’re a serious buyer with your finances in order and can move quickly when needed.
3. Negotiate With Confidence
Knowing your borrowing capacity lets you negotiate confidently. Whether you’re bidding at auction or making a private offer, you’ll know your upper limit and avoid overcommitting.
4. Spot Issues Early
Pre-approval can highlight potential issues before you find your dream home — like a low credit score, missing documentation, or unstable income. Fixing these early can help avoid delays later in the buying process.
What’s Involved in Getting Pre-Approved?
Applying for pre-approval is like applying for a home loan but with less pressure, as you are getting this sorted, before you start looking. At Natloans, we make the process simple, fast, and obligation-free.
Here’s what you’ll typically need to provide:
- Proof of Identity – Such as your driver’s licence and passport
- Income Verification – Recent payslips or tax returns if you’re self-employed
- Asset & Liability Information – Details about savings, credit cards, loans, or other assets
- Living Expenses – A breakdown of your regular expenses
Once submitted, we’ll work with our panel of over 50 lenders to find the right pre-approval option for your goals. Our experienced brokers handle the legwork and keep you updated every step of the way.
What Happens After You’re Pre-Approved?
With a pre-approval in hand, you can confidently attend inspections, make offers, or bid at auction. Just remember — pre-approval doesn’t mean guaranteed approval. Once you’ve found the right property, the lender will still need to conduct a full assessment, including:
- A valuation of the property
- A final review of your financial situation
- Confirmation that you meet any remaining loan conditions
As long as nothing material has changed, the transition from pre-approval to full approval is usually straightforward.
Ready to Get Pre-Approved?
At Natloans, we’ve helped thousands of Australians get pre-approved for their home loans — and we’re here to help you too. Whether you’re a first home buyer, upgrading, or investing, getting pre-approved is a smart first step that sets you up for success.
Contact us today for an obligation-free chat, and let’s take the first step towards your property goals — with confidence.