Pre-approval
A lender's conditional indication of how much it is likely to lend you, given before you find a property.
- Also called conditional approval
- Usually valid for about 3 to 6 months
- Not a guarantee of a final loan
How it works
The lender assesses your income, expenses, debts and credit history, then gives a borrowing limit subject to conditions, usually a satisfactory valuation of the property you choose.
Why it helps
It confirms your budget, makes offers more credible, and is close to essential before an auction.
Rothmore confirms borrowing before the search starts, through a licensed broker, so you never chase a property you cannot fund.
Common questions
Does pre-approval affect my credit score?
Each application can be recorded on your credit file, so avoid applying to many lenders yourself.
Can pre-approval be withdrawn?
Yes, if your circumstances change or the property does not meet the lender's conditions.
Related terms
Sources
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.