What does preapproval really mean?

Any general questions you might have in regards to loans and finance.
Post Reply
gleeson
Posts: 58
Joined: Mon Jun 15, 2009 12:15 pm

What does preapproval really mean?

Post by gleeson »

My family got was preapproved for a home loan, and were denied approval of our official loan application.

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: What does preapproval really mean?

Post by Otto Dargan »

Pre-approval is the lender saying "based on what you have told me so far your loan would be approved subject to LMI approval, acceptable valuation and me being in a good mood on that day". Basically preapproval is good but with some lenders such as St George is it a bit meaningless.

If the property you buy isn't acceptable to the bank or if LMI declines your loan or if there is some other problem then the end result is that formal approval will not be granted.
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Post Reply