Buying your first home is one of life’s biggest milestones but it can also be one of the most stressful. Many first-time buyers miss out on their dream home not because of the competition, but because they didn’t have home loan pre-approval in place.
According to Finder, more than one in ten first home buyers have lost out on a property they wanted simply because they weren’t pre-approved. That’s a costly mistake you can avoid and here’s why getting home loan pre-approval should be one of your very first steps.
What is home loan pre-approval?
In simple terms, home loan pre-approval means a lender has reviewed your financial situation — including your income, savings, and deposit and confirmed how much you can borrow before you start house-hunting.
Think of it as getting the green light from your lender. You’re not locked into the loan yet, but it gives you confidence to make offers knowing that finance is likely secured.
When you have pre-approval, you also have:
- A clear idea of your borrowing limit, helping you set a realistic budget.
- The ability to bid confidently at auctions or negotiate with sellers.
- A strong signal to real estate agents and vendors that you’re a serious buyer.
And the best part? Home loan pre-approval usually costs nothing and can save you time, stress, and disappointment down the road.
Why skipping home loan pre-approval could cost you
Sure, you can apply for a home loan after finding your dream property. But doing it backwards can be risky.
Here’s why:
- Lenders often need time to process applications, which can delay your offer.
- Without knowing your borrowing limit, you might overestimate your budget — and risk falling short.
- Another buyer with pre-approval can snap up the property before you’ve even finalised your paperwork.
While home loan pre-approval isn’t mandatory, it’s a smart strategy to help you act fast and stand out as a prepared, qualified buyer.
Important Things to Know About Home Loan Pre-Approval
Before you start the process, here are a few key details to keep in mind:
- Pre-approval has an expiry date.
Most lenders offer home loan pre-approval for three to six months. If you don’t find a property within that time, don’t stress we can help you renew your pre-approval easily. - It’s based on your financial situation at the time.
If your income, expenses, or savings change, your lender may need to reassess your pre-approval. It’s important to keep your broker updated along the way. - Not all lenders offer pre-approval.
Some lenders skip this step entirely. Working with a mortgage broker can save you hours of research by identifying lenders who offer reliable home loan pre-approvals.
How to Get Home Loan Pre-Approval (And Why It’s Easier with Expert Help)
Getting home loan pre-approval isn’t as complicated as it sounds. You’ll generally need:
- Proof of income and employment
- Evidence of your savings and deposit
- Information about your debts and expenses
A mortgage broker can make this process seamless — guiding you on what documents are needed, helping you compare lenders, and increasing your chances of approval.
Ready to get started? Let’s talk.
Getting home loan pre-approval could be the key that unlocks your first home sooner than you think.
👉 Call us today or book a consultation online to get your pre-approval underway. We’ll guide you through every step, help you understand your borrowing power, and position you to move quickly when the right home appears.
Don’t let another buyer beat you to it. Get home loan pre-approval now and buy with confidence.
Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Connect with Louisa on Linkedin.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.