Written by Gavin HarriganHow Do You Get Pre-Approved for a Home Loan?
Updated: April 30th, 2025
Getting pre-approved for a home loan is one of the smartest ways to boost your chances of securing a property. It gives you a clear budget, strengthens your negotiating power, and shows sellers you’re serious. But how does the process work—and what do lenders actually look for?
With over 20 years of experience in mortgage broking, we help buyers navigate pre-approvals quickly and with confidence. Whether you’re a first home buyer or seasoned investor, we’ll match you with the right lender to get things moving.
What Is Home Loan Pre-Approval?
Home loan pre-approval (also known as conditional approval) is an indication from a lender that you’re eligible to borrow up to a certain amount—based on your current financial situation. It’s not a final loan offer, but it shows you’re in a strong position to buy.
Think of it like having a budget-approved shopping pass: you can attend home opens, make offers, and bid at auctions knowing you’ve already passed the lender’s initial checks.
Why pre-approval matters:
- Know your budget upfront – Avoid falling in love with properties you can’t afford.
- Stronger position when negotiating – Sellers are more likely to accept your offer.
- Save time and stress – Focus only on properties within your price range.
For more advantages, see our home loan pre-approval tips.
How to Get Pre-Approved for a Mortgage
The process of getting pre-approved is similar to applying for a full home loan. Here’s what to expect:
1. Prepare your documents
You’ll need:
- ID (driver’s licence or passport)
- Recent payslips and employment details
- Bank statements
- Details of any debts or liabilities
- Credit history
2. Choose your lender
Compare interest rates, features, and fees across lenders. You can explore:
Tip: A mortgage broker like Quantum Finance can compare options for you and recommend the best fit.
3. Submit your application
This can usually be done online or over the phone. The lender will assess your:
- Income and expenses
- Savings and assets
- Credit score and past borrowing behaviour
Once approved, you’ll receive a conditional approval letter showing your borrowing capacity.
For expert support, read our guide on what to ask a mortgage broker.
Things to Know Before You Apply
Before submitting your application, keep the following in mind:
- Pre-approval is not a guarantee – Final approval still depends on the property and your situation at the time of purchase.
- Time limits apply – Most pre-approvals expire after 60 to 90 days.
- Your credit file will be checked – Too many applications can hurt your score.
- Some properties may be rejected – Lenders may decline loans for high-rise apartments, unsealed roads, or unusual builds.
Learn how to increase your chances of getting a home loan before applying.
Types of Pre-Approval
There are two main types:
- System-generated: Automated checks with no human assessment. Fast, but less reliable.
- Full assessment: Reviewed by a credit assessor and includes a credit check. Takes longer but offers stronger backing for your loan application.
At Quantum Finance, we recommend full-assessment pre-approvals wherever possible for better long-term certainty.
When Should You Apply for Pre-Approval?
You should apply once you’re ready to buy within the next 2–3 months. It’s also wise to check your credit report and clear any outstanding debts before applying.
Need help preparing? Our article on 15 common home loan application mistakes can help you avoid setbacks.
Final Thoughts: Get Expert Help for a Smoother Experience
While getting pre-approved is straightforward, every lender is different—and small details can make a big difference. Working with a trusted mortgage broker ensures your application is structured properly and sent to the right lender the first time.
At Quantum Finance, we’ve helped thousands of Australians secure pre-approvals and buy with confidence. From reviewing your credit history to choosing the right loan, we’re here to support you at every step.
Ready to get pre-approved? Contact our mortgage brokers in Perth today and let’s make it happen.