--- title: Everything You Need To Know About Finance Pre-approval date: 2018-10-08T00:00:00+10:30 author: Christie Branscombe canonical_url: "https://www.lanser.com.au/news/everything-you-need-to-know-about-finance-pre-approval" section: News --- [ All news ](https://www.lanser.com.au/news) Lanser October 08, 2018 # Everything You Need To Know About Finance Pre-approval ![Shutterstock 1512911996](data:image/svg+xml;charset=utf-8,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271920%27%20height%3D%271079.8650168729%27%20style%3D%27background%3Atransparent%27%2F%3E) ### What is Finance Pre-approval? Getting pre-approved for finance means you’ve got the green light from your lender to borrow up to a certain amount—before you’ve found your perfect block or home. It’s your lender’s way of saying, “Yes, we’re likely to approve you for a loan,” which gives you the confidence to make an offer when you find *the one*. Just keep in mind: pre-approval is different from final approval, which happens once you’ve chosen a property and made a formal offer. [ ![I Stock 000013117225 Medium](data:image/svg+xml;charset=utf-8,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%272100%27%20height%3D%271398.7632508834%27%20style%3D%27background%3Atransparent%27%2F%3E) ](https://d2tpafjlg316w2.cloudfront.net/eyJidWNrZXQiOiJsYW5zZXItcHJvZC1pbWFnZXMiLCJrZXkiOiJhc3NldHMvaW1hZ2VzL2xhbnNlci9pU3RvY2tfMDAwMDEzMTE3MjI1X01lZGl1bS5qcGciLCJlZGl0cyI6eyJyZXNpemUiOnsid2lkdGgiOjIxMDAsImZpdCI6ImNvdmVyIn0sIndpdGhNZXRhZGF0YSI6dHJ1ZSwidG9Gb3JtYXQiOiJqcGVnIiwianBlZyI6eyJxdWFsaXR5Ijo4MCwicHJvZ3Jlc3NpdmUiOnRydWUsIm9wdGltaXNlQ29kaW5nIjp0cnVlLCJ0cmVsbGlzUXVhbnRpc2F0aW9uIjp0cnVlLCJvdmVyc2hvb3REZXJpbmdpbmciOnRydWV9fX0=) ### Why Get Pre-approved? #### You’ll have stronger bargaining power Finding your dream home or block can be a once-in-a-blue-moon moment—and chances are, you’re not the only one looking! With pre-approval, you’re in a stronger position to move quickly and make a confident offer. Sellers are more likely to take your offer seriously if you already have your finance lined up. #### It helps you set a realistic budget Sitting down with a lender or broker early on helps you understand exactly what you can afford. It can save you the heartache of falling in love with a property that’s out of reach. Plus, you won’t need to redo the loan research every time you want to make an offer. Keep in mind: most pre-approvals are valid for around 3–4 months, so you may need to renew if your search takes a little longer. [ ![Stocksy txp1b379ea6 Fdb000 Medium 619498](data:image/svg+xml;charset=utf-8,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%272100%27%20height%3D%271401.2131715771%27%20style%3D%27background%3Atransparent%27%2F%3E) ](https://d2tpafjlg316w2.cloudfront.net/eyJidWNrZXQiOiJsYW5zZXItcHJvZC1pbWFnZXMiLCJrZXkiOiJhc3NldHMvaW1hZ2VzL2xhbnNlci9TdG9ja3N5X3R4cDFiMzc5ZWE2RmRiMDAwX01lZGl1bV82MTk0OTguanBnIiwiZWRpdHMiOnsicmVzaXplIjp7IndpZHRoIjoyMTAwLCJmaXQiOiJjb3ZlciJ9LCJ3aXRoTWV0YWRhdGEiOnRydWUsInRvRm9ybWF0IjoianBlZyIsImpwZWciOnsicXVhbGl0eSI6ODAsInByb2dyZXNzaXZlIjp0cnVlLCJvcHRpbWlzZUNvZGluZyI6dHJ1ZSwidHJlbGxpc1F1YW50aXNhdGlvbiI6dHJ1ZSwib3ZlcnNob290RGVyaW5naW5nIjp0cnVlfX19) ### How to Get Pre-approved Getting started is easier than you think. Simply contact a bank, credit union or lender to set up an appointment. Each lender has their own criteria, but under Australian law, to qualify for a loan you must: - Be over 18 - Be an Australian citizen or permanent resident - Provide evidence of genuine savings - Show a steady income and a healthy credit history Lenders will look at your overall financial picture—including existing loans, unpaid bills or credit cards. The more upfront you are, the better your chances of approval. They’ll also talk you through: - How much you can borrow - What your repayments might look like - Deposit requirements - Any fees involved You’ll also want to discuss what kind of loan suits you best—fixed or variable? Your lender can walk you through the pros and cons of each option. Remember: **pre-approval is not a guarantee**. Your situation or the lender’s policies could change before you make a purchase, so be sure to keep your financial details up to date. ### Try a Calculator Not ready to speak to a lender just yet? You can get a rough idea of your borrowing power with an online tool like Beyond Bank’s [How Much Can I Borrow](https://www.beyondbank.com.au/tools-and-calculators/home-loan-borrowing-power/) calculator. ### Need Help? Our team is here to guide you through the home buying process from start to finish. Give us a call on [**(08) 8132 1115**](tel:0881321115) and one of our sales consultants will be happy to help. [## Not sure where to start? We’d love to chat to you. ## Not sure where to start? We’d love to chat to you. Get in touch ](https://www.lanser.com.au/contact) [ All news ](https://www.lanser.com.au/news) Lanser October 08, 2018 # Everything You Need To Know About Finance Pre-approval ![Shutterstock 1512911996](data:image/svg+xml;charset=utf-8,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%271920%27%20height%3D%271079.8650168729%27%20style%3D%27background%3Atransparent%27%2F%3E) ### What is Finance Pre-approval? Getting pre-approved for finance means you’ve got the green light from your lender to borrow up to a certain amount—before you’ve found your perfect block or home. It’s your lender’s way of saying, “Yes, we’re likely to approve you for a loan,” which gives you the confidence to make an offer when you find *the one*. Just keep in mind: pre-approval is different from final approval, which happens once you’ve chosen a property and made a formal offer. [ ![I Stock 000013117225 Medium](data:image/svg+xml;charset=utf-8,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%272100%27%20height%3D%271398.7632508834%27%20style%3D%27background%3Atransparent%27%2F%3E) ](https://d2tpafjlg316w2.cloudfront.net/eyJidWNrZXQiOiJsYW5zZXItcHJvZC1pbWFnZXMiLCJrZXkiOiJhc3NldHMvaW1hZ2VzL2xhbnNlci9pU3RvY2tfMDAwMDEzMTE3MjI1X01lZGl1bS5qcGciLCJlZGl0cyI6eyJyZXNpemUiOnsid2lkdGgiOjIxMDAsImZpdCI6ImNvdmVyIn0sIndpdGhNZXRhZGF0YSI6dHJ1ZSwidG9Gb3JtYXQiOiJqcGVnIiwianBlZyI6eyJxdWFsaXR5Ijo4MCwicHJvZ3Jlc3NpdmUiOnRydWUsIm9wdGltaXNlQ29kaW5nIjp0cnVlLCJ0cmVsbGlzUXVhbnRpc2F0aW9uIjp0cnVlLCJvdmVyc2hvb3REZXJpbmdpbmciOnRydWV9fX0=) ### Why Get Pre-approved? #### You’ll have stronger bargaining power Finding your dream home or block can be a once-in-a-blue-moon moment—and chances are, you’re not the only one looking! With pre-approval, you’re in a stronger position to move quickly and make a confident offer. Sellers are more likely to take your offer seriously if you already have your finance lined up. #### It helps you set a realistic budget Sitting down with a lender or broker early on helps you understand exactly what you can afford. It can save you the heartache of falling in love with a property that’s out of reach. Plus, you won’t need to redo the loan research every time you want to make an offer. Keep in mind: most pre-approvals are valid for around 3–4 months, so you may need to renew if your search takes a little longer. [ ![Stocksy txp1b379ea6 Fdb000 Medium 619498](data:image/svg+xml;charset=utf-8,%3Csvg%20xmlns%3D%27http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg%27%20width%3D%272100%27%20height%3D%271401.2131715771%27%20style%3D%27background%3Atransparent%27%2F%3E) ](https://d2tpafjlg316w2.cloudfront.net/eyJidWNrZXQiOiJsYW5zZXItcHJvZC1pbWFnZXMiLCJrZXkiOiJhc3NldHMvaW1hZ2VzL2xhbnNlci9TdG9ja3N5X3R4cDFiMzc5ZWE2RmRiMDAwX01lZGl1bV82MTk0OTguanBnIiwiZWRpdHMiOnsicmVzaXplIjp7IndpZHRoIjoyMTAwLCJmaXQiOiJjb3ZlciJ9LCJ3aXRoTWV0YWRhdGEiOnRydWUsInRvRm9ybWF0IjoianBlZyIsImpwZWciOnsicXVhbGl0eSI6ODAsInByb2dyZXNzaXZlIjp0cnVlLCJvcHRpbWlzZUNvZGluZyI6dHJ1ZSwidHJlbGxpc1F1YW50aXNhdGlvbiI6dHJ1ZSwib3ZlcnNob290RGVyaW5naW5nIjp0cnVlfX19) ### How to Get Pre-approved Getting started is easier than you think. Simply contact a bank, credit union or lender to set up an appointment. Each lender has their own criteria, but under Australian law, to qualify for a loan you must: - Be over 18 - Be an Australian citizen or permanent resident - Provide evidence of genuine savings - Show a steady income and a healthy credit history Lenders will look at your overall financial picture—including existing loans, unpaid bills or credit cards. The more upfront you are, the better your chances of approval. They’ll also talk you through: - How much you can borrow - What your repayments might look like - Deposit requirements - Any fees involved You’ll also want to discuss what kind of loan suits you best—fixed or variable? Your lender can walk you through the pros and cons of each option. Remember: **pre-approval is not a guarantee**. Your situation or the lender’s policies could change before you make a purchase, so be sure to keep your financial details up to date. ### Try a Calculator Not ready to speak to a lender just yet? You can get a rough idea of your borrowing power with an online tool like Beyond Bank’s [How Much Can I Borrow](https://www.beyondbank.com.au/tools-and-calculators/home-loan-borrowing-power/) calculator. ### Need Help? Our team is here to guide you through the home buying process from start to finish. Give us a call on [**(08) 8132 1115**](tel:0881321115) and one of our sales consultants will be happy to help. [## Not sure where to start? We’d love to chat to you. ## Not sure where to start? We’d love to chat to you. Get in touch ](https://www.lanser.com.au/contact)