5 Ways to Prepare for Quick Home Loan Pre-Approval

The property market is on fire right now! Aussie homes are being snapped up faster than ever, with most properties selling at their very first open home.

If you want to stay ahead of the pack, securing your home loan pre-approval is absolutely essential. In a market like this, it’s all about being ready to move – first in, best dressed! Don’t let your dream home slip through your fingers.

Getting your pre-approval sorted isn’t just a box to tick – it’s your secret weapon. It gives you the upper hand when negotiating with sellers and lets you negotiate with confidence the moment your dream property pops up. In this market, speed and certainty win the race!

At Fox Home Loans, we’ve guided countless Aussies through the home loan process. Preparation is everything, and we’re here to help you stay ahead. Follow these five actionable tips to secure fast pre-approval and confidently claim your dream property!

Tip # 1: Avoid Making Multiple Finance Enquiries

Your credit report plays a key role in loan pre-approval. Every time you apply for credit – whether it’s a personal loan, credit card, or car loan – it leaves a mark on your credit history and lowers your credit score. Too many enquiries in a short time might affect your home loan eligibility or reduce your borrowing capacity.

Here’s what to do instead

Before making any financial enquiries, consider speaking with a mortgage broker like Fox Home Loans. We can guide you through the process and help you avoid unnecessary applications that may affect your creditworthiness.

For instance, if you’re unsure about your borrowing power, our team can provide clarity without impacting your credit score, by reviewing your financial situation and providing tailored options to suit you.

Tip # 2: Understand the Purchase Price and Property Type

Lenders need clarity on the property type and price. Whether it’s a house, unit, or townhouse, its location and value impact your borrowing capacity, Loan to Value Ratio, and loan options. Being specific helps secure the right deal.

Example

If you’re looking at a $700,000 house in Brisbane with 10% deposit of $70,000, you’ll need to account for both the purchase price and additional costs such as stamp duty which will come out of your deposit. Tools like our Stamp Duty Calculator can help give you an idea of the maximum amount you can borrow when factoring in additional government charges, giving you clarity on the purchase price you’re comfortable with.

Tip 3. Know Your Contribution Towards the Purchase Price

Your financial contribution to the purchase is a critical factor in home loan pre-approval.  This amount could include your savings, gifts from family members, guarantor support, or government schemes such as the First Homeowner Grant or stamp duty waivers.

Why it matters

Lenders want to see a clear plan for your deposit and costs. Identifying your contribution helps them assess your situation confidently. Each lender has different deposit and Loan to Value Ratio requirements, so knowing your budget ensures you can find the right match.

Example

If you’re a first home buyer needing a $50,000 deposit but have $40,000 after fees, the First Home Concession could reduce fees so your full $50,000 goes towards the deposit. However, it’s crucial to choose lenders that accept this concession.

At Fox Home Loans, we actively identify strategies to maximise your deposit – from gifts, to guarantors, or from government concessions. Our expertise ensures you explore all viable options to boost your borrowing power and secure your dream property.

Tip # 4: Prepare Your Documents

Having all your documentation ready is crucial for a swift and seamless pre-approval. Before submitting your application to a lender, our highly experienced team will assess your application to ensure it matches the lenders criteria, and to do this they need the same documents the lender requires such as:

• Current copies of your government ID Documents (Driver’s License, Passport, Proof of Age Card, Medicare card).
• Two of your most recent Payslips.
• Bank statements in your name showing consistent salary deposits from your employer and good financial conduct.

Example

A client who had their payslips and ID ready alongside three months of clean bank statements was able to secure pre-approval within 48 hours of us receiving their documents. Their proactive preparation streamlined our review process and meant the lender also had everything they needed to offer an approval.

Organise early

Any inconsistencies in your documents have the potential to prolong a pre-approval, so ensuring that all documents are up-to-date, legible, and accurately reflect your current financial situation is crucial to a fast pre-approval.

Tip # 5: Choose the Right Professionals to Work With

Purchasing a home involves collaboration with several professionals, each playing a vital role in ensuring a smooth and successful transaction.

From real estate agents and buyer’s agents to conveyancers, and building/pest inspectors, assembling the right team can make all the difference when navigating Australia’s competitive property market.

Why it matters

• Understanding who’s on your team is key to fast pre-approval. Each professional involved will charge fees, so it’s crucial to know if you’ll pay these directly or include them in your settlement funds. This helps us accurately assess your borrowing power and loan options.
• As the home buying process is a complicated one, it’s not unusual for us to need documents or updates from people like conveyancers & buyers’ agents, and if we know who these are from the beginning, we can communicate directly with them to get the information required quicky and without taking up your time.

Example

We recently worked with a client who enlisted the help of some of our trusted referral partners in conveyancing and a building inspection. Both the conveyancer and building inspector were able to identify potential legal and structural issues early in the process, which helped our client avoid costly surprises and gave them the ability to complete their purchase confidently.

Hot Tip

At Fox Home Loans, we can connect you with trusted professionals we’ve worked with for years. These experts will guide you through every step of the home buying process, ensuring a smooth experience and giving you an edge in securing your dream home.

Preparing for home loan pre-approval doesn’t need to be stressful – the home buying journey can be enjoyable! By following our five tips, you’ll be ready for fast home loan preapproval – so you don’t miss out when your dream property appears. We’re here to guide you and simplify every step of the way. Enquire with us today and let’s lock in your home loan pre-approval!