Home Loan Pre-Approval: Your Smart First Move in Buying a Home

Written By Sally Chen

When getting ready to purchase property, one essential step many overlook is obtaining home loan pre-approval. This early move offers significant benefits—and peace of mind, especially in the current competitive market. 

What Is Pre-Approval?

Pre-approval is when a lender assesses your financial situation and confirms how much they may be willing to lend you. While it’s not a guarantee of a final loan, it gives you a strong idea of your borrowing power before you start house hunting.

Why It’s Worth Doing

  • Define your budget: Know exactly what property price range suits your financial situation.

  • Stand out to sellers: In a competitive market, pre-approval shows you’re serious—and ready to buy.

  • Speed up the buying process: With paperwork and credit checks already done, you're one step closer when you find the right home.

What You Need to Know

  • Pre-approval isn’t final: The lender still needs to assess the property you choose and confirm your financials haven’t changed.

  • It expires: Most pre-approvals are valid for 60 to 90 days. If your pre-approval expires before you find the right home, it’s usually simple to renew with your broker or lender.

Types of Pre-Approval

  • Online/automated pre-approval: Quick and convenient but usually based on limited checks.

  • Full pre-approval: Involves a more thorough review of your finances and gives you a stronger position when making offers.

How to Strengthen Your Application

  • Have your documents ready: This usually includes ID, payslips, bank statements, details of any debts or assets, and proof of income.

  • Avoid multiple credit checks: Applying with several lenders at once can affect your credit score.

  • Keep your finances stable: Changing jobs, taking on new debt, or reducing your income can impact your chances of full approval later.

Getting pre-approved before you start house hunting puts you in control. It shows sellers you’re ready to act and helps you shop within a realistic budget. Think of it as the foundation for a confident and smooth home-buying journey.

Getting ready to enter the market and need a pre-approval? Contact us today and we'll get your journey started on the right foot. 

Sally Chen
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