Q: What is pre-approval for a home loan?
A: Pre-approval for a home loan is when a lender gives you an indication of how much they may be willing to lend you based on your financial situation. Pre-approval is not a guarantee of a loan, but it can give you a better idea of how much you can afford to spend on a property.
Q: How long is pre-approval valid for?
A: The length of time that home loan pre-approval is valid for can vary depending on the lender. Some lenders may provide pre-approval that is valid for up to three months, while others may offer longer periods of six or 12 months.
It’s important to note that pre-approval is not a guarantee that the lender will approve your loan application. If your circumstances change or if the lender’s lending criteria changes, your pre-approval may no longer be valid.
Q: What happens if my pre-approval expires?
A: If your pre-approval expires before you find a property to purchase, you will need to apply for pre-approval again. This may involve providing updated financial information, such as recent payslips or bank statements.
If your circumstances have changed since your last pre-approval, such as if you have changed jobs or taken on new debt, your eligibility for a loan may be impacted. It’s important to speak to your lender or mortgage broker if you have any concerns about your pre-approval.