Pre-approval is not approval
The bottom line
Pre-approval is a budget, not a yes to the property you have found.
A pre-approval letter says the bank will lend you up to a certain amount, subject to the property being acceptable. Cross-leases with defects, unconsented work, very small apartments and some new builds can all change the bank's answer once it sees the actual address.
That is why a finance condition in your offer is still worth having even with pre-approval, and why your mortgage adviser and your lawyer need to be talking to each other from the start.
Read this
Pre-approval, loan documents and your bank
Do this
Check your pre-approval expiry date and any conditions on it
Check yourself
Does pre-approval guarantee the bank will lend on a specific property?
No. The bank assesses the property after you have an agreement.
Name one thing that can change the bank's position after pre-approval.
A cross-lease defect, unconsented work, a small apartment, or a change in your income or debt.
Should you keep a finance condition if you are pre-approved?
Usually yes, unless you are bidding at auction where it is not possible.
Talk it through
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