Being pre-approved for a home loan may not mean what you think it means.
As a home buyer, pre-approval only gives you an idea of how much a bank MIGHT be willing to lend you. It allows you to know (roughly) the maximum amount you can spend on a house, but that’s about it. Pre-approval is often conditional on a successful credit check and property assessment. Essentially, pre-approval doesn’t guarantee you a home loan, and if your circumstances change, it’s possible that your pre-approval is no longer valid.
Full approval gives you the assurance that you will be able to get a home loan and the confidence to make an offer on a property. Particularly at an auction, you couldn’t bid without subject to finance if you only had pre-approval. With full approval, you can. It means that your credit history and property have already been assessed and approved. Having full approval means that the bank has done a thorough check of your financial situation and property and are willing to give you a loan, all you have to do is accept and complete the paperwork.
It may seem like you would have to wait a long time to get full approval, but this is not the case anymore. With our online home loans, you could have full approval on the same day you apply.