Pre-approval tells you exactly what you can borrow before you start looking. It gives you confidence at auction, credibility with agents, and a clear budget from day one.
Pre-approval — also called conditional approval or approval in principle — is a lender's assessment that, based on your current financial situation, they would be willing to lend you up to a specified amount. It is conditional on the property you ultimately purchase meeting the lender's requirements.
Pre-approval is not a guarantee of a loan. It is an informed indication from the lender based on your income, expenses, existing debts and credit history. Final (unconditional) approval happens only once you have found a specific property and the lender has assessed both you and that property.
A Lendology pre-approval is fully assessed by a credit analyst — not a system-generated response — which means it carries real weight when you are making an offer or bidding at auction.
Pre-approval tells you exactly what you can afford before you spend weeks inspecting properties. This sets realistic expectations, saves time, and prevents the disappointment of falling in love with a home you cannot finance.
For auction buyers, pre-approval is essential. If you win at auction you are unconditionally committed to the purchase — there is no cooling-off period and no finance clause. Bidding without pre-approval means bidding without knowing your limit. Many buyers have been caught in exactly this position.
Agents and vendors also view pre-approved buyers more favourably in private treaty negotiations. A pre-approved buyer is a credible buyer, and that can make a real difference when competing with other offers.
With a complete application and all documents ready, Lendology typically secures pre-approval within one to three business days. We prepare your application thoroughly before submitting — collecting and checking every document — which minimises the risk of delays or back-and-forth with the lender.
Some online lenders offer same-day pre-approvals, but these are generally system-generated credit score checks rather than full assessments. A proper pre-approval requires a credit analyst to review your income, expenses, liabilities and serviceability — and that is what Lendology submits on your behalf.
Most lenders keep a pre-approval active for 90 days. If you have not found a property within that time, the pre-approval can usually be renewed quickly provided your financial situation has not changed materially.
Lendology tracks your pre-approval expiry and reaches out before it lapses so you are never caught out mid-search. If your circumstances change — new job, change in income, additional debts — we update the application before renewing.
Pre-approval does not assess the specific property you are buying. The lender will commission an independent valuation once you have a property under offer — and if that valuation comes in below the purchase price, the pre-approved amount may not cover what you need.
Pre-approval is also not a rate lock. The interest rate at pre-approval may change by the time you apply for formal approval, depending on market movements and lender pricing decisions. Lendology monitors this and advises you if a rate change affects your position.
Finally, pre-approval can be withdrawn if your financial situation changes before formal approval — for example, if you take on new debt, change jobs, or miss repayments on existing commitments. We advise you on what to avoid during the pre-approval period.
A formal pre-approval application involves a credit enquiry which temporarily affects your score. This is why we do not recommend applying at multiple lenders simultaneously. We identify the right lender first, then apply once — minimising the credit impact.
You can, but it is risky. Without pre-approval you are relying on obtaining finance within the cooling-off period — which is typically five business days in South Australia. If your finance falls through, you may lose your deposit. For auctions, no pre-approval means no clear limit.
No. Pre-approval is conditional on the property meeting lender requirements. Formal (unconditional) approval is issued once the specific property has been valued and all conditions have been satisfied. Formal approval is what allows settlement to proceed.
Yes. Lendology can complete your pre-approval application entirely online or over the phone — you do not need to come into the office. We collect your documents digitally and communicate throughout the process so you always know where things stand.
You can hold pre-approvals from multiple lenders, but each application generates a credit enquiry. Too many enquiries in a short period can negatively affect your credit score. Lendology selects the single best lender for your situation before applying — so one pre-approval is usually all you need.