Home loan pre-approval: what to prepare before you start looking

By Russell Carter, Partnerships Manager at Goodlend. Last reviewed 22 October 2026.

What is home loan pre-approval?

Home loan pre-approval is an indication from a lender of what it may be prepared to lend, subject to conditions. It can help you set a property-search budget. It is not a promise to fund any property you choose or a substitute for final approval.

Ask what has actually been assessed. An online borrowing estimate and a lender’s conditional assessment can involve different checks. Your approval letter should explain the conditions and how long the assessment remains valid.

Goodlend is a mortgage broker. We help you understand the lending process and your next steps; the lender makes its credit decision. For a useful independent introduction, see Moneysmart’s guide to buying a house.

When should you seek pre-approval?

Start by separating the conversation from the application. You can discuss your deposit, budget and intended buying window with a broker before you are ready to submit a lender application.

If buying is still several months away, that discussion can help you identify information to gather and questions to resolve. As your property search becomes more concrete, ask when to apply, how long the lender’s pre-approval lasts and what happens if your plans take longer.

• Preparing to look: review your deposit source, cash for costs, income, commitments and comfortable repayment budget.
• About to inspect seriously: discuss lender assessment, likely document requirements and application timing with your broker.
• Before committing to a property: check the finance position and outstanding conditions. Ask your conveyancer or solicitor about the contract and any auction obligations.

Do not assume pre-approval makes an unconditional offer or auction bid safe. It can expire, require updates or be affected by the property. Pre-approval typically lasts 3 to 6 months and does not guarantee you will get the loan.

If you are using the Australian Government 5% Deposit Scheme, you have 90 days after pre-approval to find a home and sign a contract. Plan your search with that clock in mind.

What should you prepare for a pre-approval conversation?

You do not need to arrive with every answer. A clear outline is a useful start:

• Your timing: when you want to start inspecting and roughly when you hope to buy.
• Your deposit: the amount available, where it comes from and whether any part is still unconfirmed.
• Your income: how you are paid, your employment situation and any variable or self-employed income.
• Your commitments: loans, credit-card limits, buy-now-pay-later arrangements and other regular obligations.
• Your spending: realistic living expenses and a repayment level that leaves room for your life.
• Your document questions: what evidence the lender needs, how recent it must be and how to provide it securely.

Requirements vary. Tell your broker early about anything that may need a closer look, rather than trying to make your circumstances fit a generic checklist.

Our first home buyer mortgage broker page walks through the whole process, including the Victorian and federal support on offer.

What cash do you need beyond the deposit?

A deposit and a cash-to-complete budget answer different questions. Alongside your contribution toward the property price, you may need to allow for duty, conveyancing, inspections, lender costs, registration or settlement adjustments, moving and a buffer.

Ask which costs apply, which are already included in a quote and when they must be paid. If mortgage insurance is relevant, check whether it is paid in cash or included in the loan before counting it in your cash budget.

A deposit below 20% is not automatically a dead end. The available pathway depends on the lender, property and your circumstances, including any applicable scheme conditions. Equally, having a deposit does not establish that a loan will be approved.

Can a home loan be declined after pre-approval?

Yes. Pre-approval remains conditional. A property valuation, a property that does not meet the lender’s requirements, changed financial circumstances or unmet conditions can affect the final decision.

Before taking on new debt, changing employment or making another significant financial change, ask your broker how it could affect your application. Keep the broker informed when you find a property so the next checks can be arranged.

The aim is to understand the conditions while you still have time to respond—not discover them after making a commitment.

Five questions worth taking to your broker

1. What buying budget appears realistic, and what still needs checking?
2. Should I prepare now or submit a lender application now?
3. What has the lender assessed, and what remains conditional?
4. When does the pre-approval expire, and what would a renewal involve?
5. What should I check before making an offer or bidding at auction?

Common pre-approval questions

Buying in Footscray or the inner west? See our Footscray and inner west page.

General information only. This guide does not assess your circumstances or confirm a loan, deposit requirement, scheme eligibility or property suitability. Get advice about your circumstances and obtain legal advice on any contract before committing.

Goodlend Mortgage Brokers is a trading name of Gariwed Falls Pty Ltd (ACN 682 875 798) ATF Holvor Investments Unit Trust No. 1, credit representative 556461 of Connective Credit Services Pty Ltd (ACL 389328).