Construction finance
The Finance Brokers
Development funding
What is Conditional Approval, and Why Should Home Buyers Care?
Conditional approval is the bank’s way of giving you a polite nod and saying, “You’re almost there!” before you set out to buy your dream home. How you get that nod, though, depends on your lender’s mood. Some banks simply take your word for it (for now) and ask for all the proof later, once you’ve found a house that feels right. Others prefer to see your paperwork (bank statements, pay slips, all the juicy details—straight away, just to make sure you’re not bluffing).
Once you’ve picked your property, your lender might send in the valuer for a quick reality check, and then it’s (hopefully) smooth sailing to settlement.
Here’s what conditional approval absolutely isn’t:
- It’s not that “you can borrow up to this much!” number from a website calculator.
- It’s not your broker or banker saying, “Looks good to me!” after a glance.
If you don’t have an official letter of conditional approval from the lender, secure in your hands, you’re not approved yet.
At The Finance Brokers it means we have reviewed your income; we have reviewed your bank accounts; we have completed servicing calculations; and we have completed credit checks before we lodge all of this with the lender and they advise that you are Conditionally Approved. It also means that the final steps are for you to identify a property if you have not already, and for us to complete a valuation if required. From there documents are issued by the lender, signed by you, and you are waiting on settlement.
Looking to fund that home purchase with less hassle and more certainty?
Reach out to us at The Finance Brokers.
1300 001 397
