You’ve Got Pre-Approval – What Happens Next?

Congratulations on your pre-approval!
Securing pre-approval from the bank is an important milestone in your home-buying journey. It means you are one step closer to owning your new home. But what comes next? Here is a clear, step-by-step guide to help you navigate the process with confidence.

1. Review Your Pre-Approval Letter Thoroughly

Your pre-approval is more than just a “yes” from the bank. It includes specific conditions that must be met before the bank will issue full (unconditional) approval.

• Read it carefully and take note of any requirements.

• If anything is unclear, reach out to your mortgage adviser for clarification — we are here to guide you.

2. Begin House Hunting – Within Your Budget

With pre-approval in hand, you can confidently start looking for properties within your approved price range.

• Found something below your approved limit? Excellent — your loan amount can be adjusted down.

• Interested in something higher than your pre-approved amount? Speak to your mortgage adviser before signing any agreements to ensure your finance will still work.

3. Obtain Legal Advice Before Signing

Before signing a Sale & Purchase Agreement, always have your lawyer review the document.

• Include a subject to finance clause, as the bank must still approve the specific property. This process generally takes around 10 working days.

• Consider adding conditions for:

  • LIM report

  • Building inspection
    These clauses protect you in case the property does not meet expectations or legal requirements.

4. Be Aware of Valuation Requirements

In certain cases — such as private sales, high loan-to-value ratios (LVRs), or unique property types — the bank may require a Registered Valuation at your expense.

• Where possible, we work to have this requirement waived, but the final decision rests with the bank.

5. Secure Unconditional Approval

Once the bank confirms the property meets its requirements, you will receive unconditional approval.

• Your solicitor and the real estate agent will then be notified so the transaction can progress to settlement.

6. Complete Bank Onboarding (If You’re a New Customer)

If you’re new to the bank providing your mortgage, you’ll need to complete onboarding steps before loan documents can be prepared, including:

• ID verification

• Bank forms and compliance checks

7. Arrange Settlement and Insurance

Settlement typically occurs:

• Around 3 weeks after going unconditional, or

• Approximately 5 weeks after signing the Sale & Purchase Agreement.

If the property is not a unit/apartment (i.e., not strata title), you’ll need to arrange home insurance that lists the bank as the Interested Party or Mortgagee.

Full Process Overview

Here’s the complete journey from application to moving in:

1. Complete application form

2. Provide supporting documents

3. Submit to the bank for assessment

4. Receive pre-approval

5. Search for a property within your approval limit

6. Seek legal advice

7. Sign Sale & Purchase Agreement (subject to finance)

8. Valuation/building report (if required)

9. Obtain unconditional approval

10. Complete bank onboarding (if applicable)

11. Sign loan documents with your solicitor

12. Arrange home insurance noting the bank as Interested Party

13. Settlement

14. Move into your new home