Getting Pre-approved
Consider timeframes and set your expectationsHow long will you have to wait for an answer on your home loan application and what can you do to increase the chances of a fast approval? We'll explain here.
Getting Pre-approved
How long does the approval process take?
To guarantee the fastest possible turnaround time, you should ensure that all information provided is as complete as possible. Take note of the required documentation and make sure that it’s all provided. This could include things like:
- proof of identification,
- recent payslips,
- account statements, and
- credit card statements.
Once the application is submitted to the lender or banks, they will prioritise it in their system. If it’s a straightforward deal, then you'll typically hear back from them in 5-7 working days. But if there is information missing or extra information required then they’ll contact your mortgage broker and let them know. The bank will then send the ‘approved’ pre-approval to your mortgage broker/financial adviser. They will then notify you that you’re pre-approved.
A tip, even if you are pre-approved, it’s typically subject to conditions and one of the standard conditions is the bank needs to approve the property first because the banks want to know the security (property) is safe eg. not a leaky building. If you're going to auction, then you'll need to have an 'unconditional' approval, rather than a pre-approval offer.
Related Questions
Do I need preapproval to buy property through auction? Can I buy at auction and then apply for loan?
It is best to have a pre-approval in hand when attending auction so you can be sure of what amount you can borrow up to. You should also inform your lender about the auction so they can confirm whether the property is acceptable to them as security. Your insurance company should also be contacted to confirm Home Insurance is available for the property.
Remember, once you win at auction, you are liable to purchase the property so you need to make sure you have the funding in place beforehand. It is also likely that you'll need to pay the deposit immediately, generally 10% of the value of property.
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