Pre-Approvals: Do You Need A Pre-Approval Before House Hunting?

Healthcare Home Loans
Sep 29
3 min read

Updated: Oct 31

Pre-Approvals: Do You Need A Pre-Approval Before House Hunting?

If you’re a first-time home buyer or considering upgrading to your next property, getting pre-approved for a home loan is one of the smartest steps you can take before you begin house hunting. For healthcare professionals navigating shift work, limited time, and complex income structures, a home loan pre-approval can save time, reduce stress, and give you a serious edge in a competitive property market.

What is a Pre-Approval?

A pre-approval (also known as conditional approval) is a lender's indication that you’re eligible to borrow up to a certain amount based on your financial situation. It’s not a formal loan offer, but it confirms that your finances have been reviewed and that you’re likely to be approved when you find the right property.

Pre-approvals typically last 90 days, giving you a window to search with confidence.

Take the quiz to find out how ready you are to get Pre-Approved

What If I Miss My Pre-Approval Deadline?

Pre-approvals typically last 90 days. But if your pre-approval expires before you’ve found the right property, don’t stress, we’ve got you covered.

At Healthcare Home Loans, we can help you renew your pre-approval quickly, often without needing to start the full application again. As long as your financial situation hasn’t changed significantly, it’s usually a straightforward process. We’ll reassess your documents, update any expired information (like payslips or bank statements), and liaise with the lender to extend your pre-approval so you can continue your property search uninterrupted.

Tip: We’ll remind you before your pre-approval expires, so you’ll never be caught off guard.

7 Reasons to Get Pre-Approved Before You Start House Hunting

1. Know Your Budget

A pre-approval sets a clear boundary on what you can afford, helping you narrow your property search and avoid wasting time on homes outside your price range.

2. Strengthen Your Offer

In a hot market, pre-approval gives you a competitive edge. Sellers and agents are more likely to prioritise buyers who are finance-ready.

3. Save Time and Reduce Stress

Once pre-approved, you’ve already handled most of the paperwork, so the final approval process will be faster and smoother when you do find your dream home.

4. Identify Issues Early

Getting pre-approved allows your broker to identify any issues—such as unusual income structures, credit concerns, or deposit shortfalls—before you’re under contract.

5. Negotiate Like a Pro

Pre-approved buyers are perceived as serious and committed, giving you more negotiating power with real estate agents and sellers.

6. Protect Yourself from Overcommitting

With interest rates changing and property prices fluctuating, pre-approval ensures you’re not overextending yourself financially.

7. Fast-Track to Settlement

In competitive markets, properties can sell in days. A pre-approval allows you to move quickly and settle faster, minimising delays and missed opportunities.

Why It’s Especially Important for Healthcare Professionals

At Healthcare Home Loans, we understand that healthcare professionals face unique challenges—from irregular rosters and overtime income to short-term contracts and limited time off.

We work with over 50 lenders who specialise in healthcare finance, offering:

Discounted interest rates for medical professionals
LMI waivers (even with less than 20% deposit)
Tailored solutions for doctors, nurses, allied health workers, aged care staff, and non-clinical support roles

Our team handles the complexity, so you can focus on finding the perfect home.

Know Your Budget

A pre-approval sets a clear boundary on what you can afford, helping you narrow your property search and avoid wasting time on homes outside your price range.

💡 What if you're pre-approved for $1 million but buy a property for $800,000?

That’s totally fine. Pre-approval is simply your maximum borrowing capacity, not a required spending amount. If you choose to purchase a home for less than your approved limit, you’ll only borrow what’s needed for that specific property. For example, if you're pre-approved for $1 million but only need $800,000, your lender will base your final loan on the actual purchase price. This can also mean lower repayments, potentially less interest over time, and a more comfortable financial buffer.

Use our preferred loan repayment calculator to see what your monthly repayments could look like at different purchase prices.

Pre-approval gives you flexibility and clarity, so you can make informed decisions as you explore the market.

Pro Tip: Don’t Rely only on Online Calculators, your financial situation is unique to you.

Online home loan calculators are great for rough estimates, but they don’t account for your unique financial situation. A pre-approval from a specialist mortgage broker provides accurate borrowing power based on real lender policies.