A common trap for home buyers is to assume that they have home loan approval in place when, in reality, no such approval has been granted.
The risk here is that you could make an unconditional offer to buy a property, only to discover that you don’t have approval for a home loan.
This is why a golden rule to remember is that a loan cannot be formally approved until your lender has examined your personal ID, plus written evidence of your income and outgoings, and of course, your deposit. Just entering a few details on a lender’s website for instance will not result in home loan approval.
Conditional approvals and formal approvals don’t last indefinitely. They typically have a timeframe of three months but even then, nothing is set in stone prior to settlement.
A lender can still pull out of the deal prior to settlement for a number of reasons such as fraud or error, or more likely, if they believe your financial situation has changed significantly since you first applied for a loan.
This complexity all highlights the need to speak with your Mortgage Choice broker to be sure you have the right sort of approval in place to move forward with your home purchase.