If you’re thinking about buying your first home, getting a home loan pre approval is the smart way to begin. It can help you know exactly what you can afford before you start house hunting.

But what is a pre approval on a home loan? Is it a guarantee that your loan will be approved? What’s the process for applying? And what do lenders look for when considering a pre approval application?

What is a Pre Approval on a Home Loan?

Pre approval is when a lender provides written confirmation of how much you can borrow for a home loan before you find a property to buy. Pre approval is based on your current financial situation. This means the lender evaluates your credit history, income, existing debts and the size of your deposit when deciding how much they’re willing to loan you.

Getting pre approved for a home loan can help you set a definite budget and negotiate with greater confidence (since you know exactly how much you can afford to offer). However, keep in mind that a pre approval is only an indication from the lender, not a guarantee. They’ll still want to assess the value of your chosen property and check that your financial situation is unchanged before they issue final loan approval.

How Do I Get a Pre Approved Home Loan?

Many first home buyers ask the question: “How do I get a pre approved home loan?” They know that pre approval is important, but just aren’t sure how to get started. To get pre approved for a home loan, follow these six simple steps:

1. Gather your documents (photo ID, recent payslips, bank statements, etc.).
2. Check your credit report.
3. Calculate your borrowing power (you can use an online calculator).
4. Contact a mortgage broker for expert advice.
5. Submit your application (your broker will do this for you).
6. Receive your pre approval (typically valid for 3-6 months).

What Lenders Look For in a Home Loan Pre Approval Application

The key to a successful pre approval is to know in advance what lenders are looking for. This includes:

• Income and Employment Stability – Have copies of recent payslips and paperwork ready that shows how long you’ve been with your employer.
• Credit History – Past defaults or missed payments will be a red flag to lenders, so resolve any issues before you apply.
• Deposit and Savings – Provide evidence of genuine savings (regular deposits into a savings account for at least 3 months).
• Debts and Expenses – Lenders will look at your credit cards, car loans and living expenses. If possible, reduce other forms of debt before applying.
• Living Situation – Are you currently living with parents or renting your own home? If renting, can you provide a rental ledger showing consistent payments? If living with family, can you prove that you’ve been contributing regularly to household expenses?

Your Home Loan Pre Approval Checklist

Before applying for a home loan pre approval, make sure you:

1. Know your budget
2. Reduce existing debts and credit limits
3. Save a reasonable deposit (plus extra for costs)
4. Have your documents organised
5. Avoid any unnecessary major purchases

Getting Pre Approved for a Home Loan: How Brokers Can Help

The best way to secure pre approval for a home loan is by talking to an experienced mortgage broker. A finance broker can assess your current situation and make expert recommendations on how to improve your borrowing capacity. They can also identify which loan product will be the best solution for your current and future financial needs.

Get Pre Approved for a Home Loan with Professional Lending Solutions

There are plenty of things that can stress out a first home buyer, but getting pre approval doesn’t have to be one of them. At Professional Lending Solutions, we can guide you through each step of the process, so you’re ready to buy with confidence. We’ll answer your questions, offer practical advice and make sure the entire process is as simple and stress-free as possible.
Don’t put off pre approval any longer.

Contact Phil and the PLS team today to get started on your home loan pre approval.