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Should you get conditional pre-approval for a home loan?

Should you get conditional pre-approval for a home loan?

Conditional pre-approval can help you make sure you don't miss out on snapping up your dream property when the time is right.

When it comes to buying property, carefully considering all your circumstances and options and acting fast when you need to can be quite a balancing act. Getting conditional pre-approval can help you do just this, giving you a better chance of locking down a new place before someone else does.

What is conditional pre-approval?

Conditional pre-approval is an indication from a lender that you’re eligible to apply for a home loan up to a certain limit. You’re under no obligation to take the loan, and the lender has no obligation to lend you that amount, but it can show sellers you’re serious about buying and that you’re confident you can afford the property.

In order to give you an indication of what you can reasonably expect to borrow, a lender should take into account your personal financial situation and the price range of properties you’re looking at.

What are the advantages of conditional pre-approval?

Not only does conditional pre-approval show sellers that you’re serious, it can also help to be well progressed with your finance as soon as you find your dream home.

If you’re early on in your home buying journey, getting conditional pre-approval can help you focus your property search by giving you a clear idea of what you’re likely to be able to afford based on what a lender is prepared to loan you. If something changes while you’re looking for a new home – your financial situation, for example – you can always renew your conditional pre-approval.

How do you apply for conditional pre-approval with CommBank?

You can apply online, call us on 13 2224 or make an appointment to talk to a home lending specialist. It’s good to have an idea of the following:

  • Price range of properties you’re interested in
  • How much of your deposit you have saved
  • Your income
  • Your living expenses.

What next?

If you’re conditionally pre-approved for a home loan by CommBank, once you find the place you’re looking for we’ll verify your financial position and then provide formal approval so that you can make a final offer knowing exactly how much you have with which to bid.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice.