It maybe an unpopular answer, but the answer is…NO you do not need a pre-approval prior to making an offer on a property!  Sometimes life doesn’t go as planned, and that one in a million dream home pops up. Once you have done your research and you’re confident in getting the funds together – you can still make an offer subject to finance even if you haven’t got a pre-approval in place.

*Usually, you will get 14 days to get your finance in order, and in some cases, we can push through a pre-approval with a lender given there is a finance timeline in place.

BUT!!!!! (and it’s a BIG one)

We STRONGLY recommend that you do have a pre-approval prior to making offers on properties. There are many reasons for this, some we have listed below:

1. A pre-approval avoids wasting your time and affecting your credit score should your loan not get approved. Lender policies can be a minefield and its not always about the numbers. So, whilst on paper the numbers look okay to you there maybe some lender policies that will cause your loan to be declined. Declines on your credit file are not ideal!

2. Agents may only take your offer to their vendor if you have a pre-approval in place.

3. Owners are more likely to accept an offer from a purchaser with a pre-approval over a purchaser without one.

In summary a pre-approval is STRONGLY recommended but it is not mandatory prior to making an offer. Contact Us if you wish to discuss further!