Tips and Tricks to Strengthen Your Finances Before Pre-Approval
If you’re thinking about buying your first home, getting pre-approval is a major milestone. But before you apply, there’s a lot you can do behind the scenes to improve your chances of a smoother process and better outcome.
Pre-approval isn’t just about income — lenders look at how you manage money day to day, how consistent your finances are, and how much risk you present as a borrower.
Here are some practical tips and tricks to help first-home buyers strengthen their financial position before applying for pre-approval.
Tip 1: Tidy Up Your Debts Early
One of the quickest ways to improve your borrowing position is to clean up existing debts. Credit cards, personal loans, car finance, and buy-now-pay-later accounts all reduce borrowing power.
Even unused credit cards can work against you because lenders consider the available limit, not just the balance. Closing accounts you no longer need can make a real difference.
Tip 2: Keep Your Income Consistent Where Possible
Lenders like stability. If you can avoid changing jobs or income structures in the lead-up to pre-approval, it can help make your application stronger.
If your income varies or you’re self-employed, make sure your records are up to date and clearly documented so lenders can easily understand your earnings.
Tip 3: Show That You Can Manage Your Spending
Your bank statements tell a story. Lenders review them to understand how you manage everyday expenses.
Before applying, look for ways to reduce unnecessary or inconsistent spending. You don’t need to live like a monk — just show that your spending is controlled and predictable.
Tip 4: Build Genuine Savings Habits
Regular savings over time demonstrate discipline and financial responsibility. Lenders often prefer consistent saving patterns over one-off lump sums.
If you already have savings, try to keep them intact. If you’re still building a deposit, consistency matters more than speed.
Tip 5: Avoid New Credit Applications
Applying for new credit cards, personal loans, or buy-now-pay-later services shortly before pre-approval can hurt your application.
Each enquiry can reduce borrowing power and raise questions. If pre-approval is on the horizon, it’s usually best to pause new credit unless absolutely necessary.
Tip 6: Keep Your Financial Activity Steady
Once you start preparing for pre-approval, consistency becomes important.
Large unexplained transactions, frequent cash movements, or sudden spending changes can slow things down. Keeping your financial behaviour steady helps lenders assess your situation more easily.
Tip 7: Make Sure Your Accounts Look Healthy
Overdrawn accounts, missed payments, or regular dishonour fees can weaken your position.
Aim to keep accounts in good order, with regular income deposits and minimal negative activity. Small improvements here can have a positive impact.
Tip 8: Know Your Comfortable Borrowing Range
Just because a lender might approve a certain amount doesn’t mean it’s the right amount for you.
Understanding what repayments feel comfortable based on your lifestyle helps prevent overcommitting and positions you as a more responsible borrower.
Tip 9: Don’t Leave Preparation Until the Last Minute
Many first-home buyers only think about their finances once they’re ready to apply. Starting early gives you time to make small changes that can add up to big improvements.
Even a few months of preparation can strengthen your overall position.
Tip 10: Get Expert Guidance Before You Apply
Knowing what matters most — and what doesn’t — can save time, stress, and guesswork.
Chase Douglas has extensive experience in mortgage lending and works closely with first-home buyers to help them understand how lenders assess applications and how to position themselves strongly before pre-approval.
From reviewing debts and expenses to identifying simple improvements, Chase helps ensure you’re prepared before approaching a lender.
Get Pre-Approval Ready With Confidence
Preparing your finances before applying for pre-approval can improve your options, reduce stress, and help you move forward with confidence as a first-home buyer.
If you’re thinking about buying your first home and want to make sure you’re putting your best foot forward, now is the perfect time to
talk to Chase.
With the right tips, preparation, and guidance, pre-approval becomes a positive step toward home ownership — not an obstacle.
