What's the difference between a loan PreApproval and Unconditional Approval?
- Pre-approval (amber light) - this is a helpful indication of how much a specific lender might be prepared to lend to you. The lender has typically taken basic, unverified information from you to indicate this amount. I highly recommend getting a pre-approval before you go house hunting - that way you have a very good idea about your target purchase price and some confidence about your abiity to borrow.
- Unconditional Approval (green light) - this is a formal “offer to lend” up to a maximum amount. Your financial circumstances plus the value of the property, and any other conditions that lender may have, have all been satisfied. It is now for you to accept (or not) the loan offer within a specified period (usually 30-60 days).
As ever, please dont hesitate to contact me with any questions.
Cheers, Marvin 0431 376 008