Securing home loan pre-approval
Your first meeting with Buyvest
First steps: During your initial consultation, we'll discuss your circumstances, income, debts, and property goals. We'll then send you a checklist of documents needed for our next meeting, allowing us to focus on your dreams rather than paperwork.
Your journey begins with just a simple phone call where we'll talk about your current circumstances, how much you earn, any debts you have, and what you're hoping to achieve with your property. We'll then send you an email listing everything you'll need for our next meeting so we can focus more on your property dreams and less on paperwork. At Buyvest, we're dedicated to understanding your unique needs and laying a solid foundation for your property journey.
During your meeting with us, your property goals take centre stage. We'll listen attentively to your requirements, guiding you through loan options that align perfectly with your situation. You'll be presented with a range of choices in detail so you can make an informed decision, and once you're happy with your loan selection, we will then move forward with the loan application process.
Understand your budget: Before meeting with us, review our budgeting guide for first home buyers to understand your financial position and what you can realistically afford.
Applying for your loan pre-approval
Application process: We'll help you complete all forms and gather necessary documentation. You'll receive a Credit Guide outlining our licensing and dispute resolution, plus a comprehensive Credit Proposal assessing your financial suitability for the loan.
We will help you fill in all the forms and explain what other information we need from you to help us apply for your home loan with a lender. This collaborative effort ensures every detail is accurately handled. We will provide a Credit Guide, which contains important information about us, our credit licensing details, and our dispute resolution process. Then we will provide a home loan Credit Proposal, this is a comprehensive assessment of your financial situation and suitability for the loan, ensuring responsible lending practices and preventing potential hardship for you and your co-borrowers.
We will send you these documents electronically to make signing easy, straightforward, and secure. Our team at Buyvest, whether you're looking for a mortgage broker Sydney, Ryde mortgage broker, Parramatta mortgage broker, or services in any other area, ensures that every step is transparent and efficient.
Explore your options: Understanding loan to value ratio (LVR) and lenders mortgage insurance (LMI) will help you make smarter decisions during the application process.
Bank checks your application
Lender assessment: The bank reviews your application against their credit requirements, verifying your income, employment status, and conducting a credit check. This typically takes 1 to 14 days depending on the lender.
The lender's assessment is a crucial step where they review your application against their credit requirements. This includes verifying your income, employment status, and conducting a credit check. The bank will also require you to sign a loan application form and where possible we will also send you this document electronically to make signing easy, straightforward, and secure. We will keep in touch with you every step of the way. Depending on the lender, this can take anywhere from a day to two weeks.
Conditional approval
Provisional agreement: Conditional approval means the lender agrees to lend based on preliminary assessment and meeting specific requirements. This isn't a formal approval but a positive step forward, often requiring property valuation or other conditions.
A conditional approval is when the lender agrees to lend you money based on a preliminary assessment and meeting certain requirements. It isn't a formal approval or commitment. Once we receive conditional approval from the lender, we will then take you through the next steps. This approval may list certain conditions that need addressing before an unconditional approval is granted.
For many, property valuation is a common condition, which the lender arranges once you provide them with a signed and dated copy of the contract of sale. Understanding this process helps you anticipate timelines and plan accordingly.
Understanding property valuation
Valuation process: The lender orders a valuation to confirm property value. Three main types exist: Bank Computer Valuation (automated), Desktop Valuation (remote analysis), and Shortform Valuation (in-person assessment).
The lender will want to know how much the property you are purchasing is worth. They will organise this valuation, which can take a few days. Understanding the different valuation types helps you anticipate the process and plan accordingly. A qualified mortgage broker near you can explain which type your lender typically uses and what to expect.
The three main valuation types
- Bank Computer Valuation: An automated approach using recent local sales data, algorithms, and market analysis. This is the quickest and most cost-effective option, though it may lack detail about the specific property's condition.
- Desktop Valuation: A remote analysis based on available photos, property information, and market data. A valuer reviews your documents without visiting the property, providing more detailed assessment than computer valuations but less than in-person reviews.
- Shortform Valuation: An in-person assessment by a professional valuer who physically inspects the property, examining condition, improvements, and comparable sales. This is the most thorough option and typically most expensive, providing greatest accuracy.
If the valuation comes in lower than expected, you have several options including negotiating with the seller, providing a larger deposit, or seeking a second valuation. Understanding the loan to value ratio concept helps you navigate this situation confidently with your home loan specialist.
Conveyancer reviews your contract of sale
Legal review: Have your conveyancer check the contract prior to exchange for unfavourable terms, caveats, unclear inclusions, or unusual clauses that could affect your ownership or use of the property.
Have your conveyancer check the contract of sale prior to exchanging contracts for any unfavourable terms or conditions. This review should include checking for caveats, which are warnings or limitations on the property, and ensuring that all inclusions, such as fixtures and fittings, are clearly listed. The conveyancer will also look for any unusual clauses or conditions that could affect your ownership or use of the property. This thorough review helps prevent any surprises or legal issues after the contract is signed.
Organise building, pest, and strata reports
Property inspections: During the cooling-off period, request building and pest reports to identify structural issues or infestations. For apartments or villas, a strata report reveals financial health, maintenance history, and upcoming costs.
Request your conveyancer to organise these reports during the cooling-off period. Building and pest reports are essential in identifying any structural issues or infestations that could affect the property's value or your safety. A strata report is crucial for apartments, villas, or townhouses, as it provides insight into the building's financial health, maintenance history, and any upcoming costs. These reports ensure you are fully informed about the property's condition and any potential risks, allowing you to make a confident and secure purchase.
Choosing your property: Different property types have different considerations. Learn more about freestanding properties, strata title properties, and how location, condition and vibes matter in your property search.
Unconditional approval
Formal approval: This is a significant milestone! Unconditional approval means the lender is completely satisfied with everything and the loan is formally approved. Your lender will send official loan documents.
This is a big moment! Unconditional approval means the lender is completely happy with everything and the loan is formally approved. We'll let you know when this happens and then the lender will send out the official loan documents. This approval gives you confidence to proceed toward settlement, knowing your financing is secure and your path to homeownership is solidified.
Property selection and the purchase process
Once you have pre-approval, you're ready to begin your property search with confidence. Understanding different ways to buy the right property will help you navigate the market. You can purchase through private treaty, buying at auction, or buying off the plan – each method has different timelines and considerations.
First home buyers should also explore the complete first home buyers journey and understand your deposit options, including Home Guarantee Scheme eligibility and NSW stamp duty concessions.
Settlement day
Final milestone: On settlement day, keys are exchanged and you officially become the property owner. It's an exciting milestone that marks the culmination of your home buying journey with your trusted mortgage adviser.
On settlement day, keys are exchanged and you officially become the property owner. It's an exciting milestone that marks the culmination of your property settlement journey. Whether you're a first home buyer or an experienced investor, our team celebrates this achievement with you.
Frequently asked questions about pre-approval
Common questions: Below we address the most frequently asked questions about pre-approval, helping you understand timelines, credit impacts, and what happens when circumstances change.
How long does a pre-approval last?
Most pre-approvals are valid for 3 months, depending on the lender. If your pre-approval expires before you find a property, you can usually apply for an extension or renewal, though you may need to provide updated financial information. Speak with your mortgage broker to understand your lender's specific timeframes and renewal policies.
Does applying for pre-approval affect my credit score?
Yes, most lenders will conduct a credit check as part of the pre-approval process, which creates an enquiry on your credit file. Multiple enquiries in a short period can impact your credit score, so it's best to be selective about where you apply. Working with Buyvest can help minimise multiple credit checks by assessing lenders' criteria without requiring numerous applications.
Can pre-approval be declined?
Yes, pre-approval can be declined for various reasons, including insufficient income, high existing debts, poor credit history, or unstable employment. If declined, ask for specific feedback so you can address the issues before reapplying. A mortgage broker can help you understand reasons and develop a strategy to strengthen your application.
Is pre-approval a guarantee that my loan will be approved?
No, pre-approval is not a guarantee of final approval. The lender still needs to assess the property you intend to purchase and verify all the information you've provided. Changes in your financial situation or issues with the property could affect final approval. This is why maintaining financial stability between pre-approval and settlement is important.
Should I get pre-approval before looking at properties?
Whilst not mandatory, getting pre-approval before serious property hunting is highly recommended. It helps you understand your budget, strengthens your position as a buyer, and prevents disappointment if you find a property you love but can't finance. Pre-approval typically takes 1 to 2 weeks, so applying early accelerates your ability to make competitive offers.
Can I get pre-approval with multiple lenders?
Yes, you can apply for pre-approval with multiple lenders but be aware that each application typically involves a credit check. Working with a mortgage broker who can assess multiple lenders' criteria without multiple credit checks is often a better approach. Brokers have access to numerous lenders and can identify the best options for your circumstances.
What happens if the property valuation comes in lower than expected?
If the valuation is lower than the purchase price, you have several options: negotiate with the seller for a lower price, provide a larger deposit to maintain the same loan-to-value ratio, seek a second valuation if you believe the first was inaccurate, look for a different lender who might value the property differently, or consider whether to proceed with the purchase given the valuation. Discuss these options with your broker to understand implications.
Can I change lenders after receiving pre-approval?
Yes, you're not obligated to proceed with the lender who provided pre-approval. However, you'll need to go through the pre-approval process again with the new lender, which takes additional time. Changing lenders typically requires a new credit check, so consider this timing carefully when making your decision. Your broker can guide you through this process efficiently.
Does pre-approval cost anything?
Many lenders offer free pre-approval services, whilst others may charge an application fee. These fees are sometimes refundable if you proceed with the loan. Buyvest provides pre-approval services at no cost to the borrower, allowing you to explore your options without financial commitment. Always confirm fee arrangements with your lender or broker.
What if my financial situation changes after pre-approval?
You should inform your lender or mortgage broker immediately about any significant changes to your financial situation after receiving pre-approval. Changes such as switching jobs, taking on new debt, or experiencing income fluctuations could affect your final approval. Transparency ensures no surprises during the final assessment and helps maintain your lender relationship.
Take the next step
Ready to begin your pre-approval journey? Contact Buyvest today and take the first step toward your property dreams with experienced guidance every step of the way. Our mortgage brokers help you compare home loans, find the best rates, and navigate the entire pre-approval process with confidence.
Book free consultation or call 0426 002 202
📧 Email: hello@buyvest.com.au
Buyvest mortgage brokers serving Sydney and NSW
We specialise in helping first home buyers and homeowners secure pre-approval, compare home loans, find the best mortgage rates, and access government schemes across Parramatta, North Sydney (Chatswood, Mosman), Hills District (Baulkham Hills, Castle Hill, Kellyville), and Inner West (Marrickville, Newtown, Leichhardt).
📱 Phone: 0426 002 202
📧 Email: hello@buyvest.com.au
📅 Book: Schedule your free consultation
About our mortgage broking services:
Buyvest is a specialist mortgage broker dedicated to helping Australians compare home loans, find low rate home loans, and secure the best mortgage rates available. Whether you're exploring pre-approval, need expert guidance on loan to value ratio, want to understand your deposit options, or need a trusted mortgage broker Sydney or nationwide, our team of experienced advisors are here to help you achieve your homeownership goals. We specialise in first home buyer home loans, investment property finance, and refinancing options across NSW and Australia.
Every great journey begins with a plan.
Start your property journey with Buyvest by your side.
Important stuff:
Please note that the views and opinions expressed in this post are general information only, and this is not financial advice.
Any advice and information is provided by Buyvest Pty Ltd ABN 91 684 841 496, Australia Credit Licence No. 567392 and is general in nature, for educational purposes only and is not intended to constitute specialist or personal advice. This website has been prepared without considering your objectives, financial situation or needs. Therefore, consider the appropriateness of the advice for your situation and needs before taking any action. It should not be relied upon to enter into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy. If any financial product has been mentioned, you should obtain and read a copy of the relevant Product Disclosure Statement and consider the information contained within that Statement concerning your circumstances before deciding whether to acquire the product. You can obtain a copy of the PDS by emailing hello@buyvest.com.au. If you want to change your financial circumstances, such as applying for a loan, all loan applications are subject to credit approval.
All information on this website is subject to change without notice.
