If you’re in the market for a property, you’ve likely heard the terms “pre-approval” and “full approval.” While they sound similar, they’re very different.
What is Pre-Approval?
Pre-approval is an indication from a lender of how much you may be able to borrow, based on an initial assessment.
It gives you:
- A budget to work within
- Confidence when house hunting
But it’s not a guarantee.
What is Full Approval?
Full approval happens after:
- You’ve found a property
- The lender has completed checks (including valuation)
Only then is the loan formally approved.
Common Mistakes
- Changing jobs before settlement
- Taking on new debt (like car loans)
- Overspending beyond your pre-approved budget
Pro Tip
Always keep your financial situation stable between pre-approval and settlement.