Things to Prepare For Before Applying for Pre-Approval
If you’re thinking about buying your first home, getting pre-approval is an exciting step — but it’s not something you should rush into unprepared.
Pre-approval looks at more than just your income. Lenders assess your overall financial behaviour, including how you manage debt, spending, and savings. Taking time to prepare can improve your chances of approval and give you access to better options.
Here are some key things to prepare for before applying for pre-approval, explained in a simple, first-home-buyer-friendly way.
Reduce Credit Card Balances and Limits
Credit cards are one of the biggest factors lenders consider. Even if you pay them off each month, the credit limit still counts when lenders assess your borrowing power.
Reducing balances is a good start, but lowering limits or closing unused cards can have an even greater impact. Fewer cards and lower limits generally mean stronger borrowing capacity.
Review Buy Now, Pay Later Accounts
Buy now, pay later facilities may seem small, but lenders view them as ongoing commitments.
Multiple BNPL accounts can reduce borrowing power and raise questions about spending habits. Closing unused accounts and clearing balances before pre-approval can strengthen your position.
Minimise Personal Loans and Car Finance
Personal loans and car finance add fixed monthly commitments that directly affect serviceability.
If possible, reducing balances or paying these off before applying can improve your financial position and free up borrowing capacity.
Build and Maintain Genuine Savings
Lenders like to see consistent savings over time. Regular deposits into a savings account show discipline and help demonstrate your ability to manage repayments.
Avoid moving savings around unnecessarily. Stability matters as much as the balance itself.
Keep Spending Consistent and Predictable
Before applying, lenders will review bank statements to understand your spending behaviour.
Large unexplained purchases, frequent cash withdrawals, or erratic spending patterns can slow the assessment process. A period of steady, predictable spending helps present a stronger picture.
Avoid Taking on New Credit
Applying for new credit cards, loans, or BNPL facilities shortly before pre-approval can negatively impact your assessment.
If pre-approval is approaching, it’s generally best to pause new credit unless absolutely necessary.
Stabilise Your Employment Where Possible
Consistent employment helps lenders assess income reliability.
If you can, avoid changing jobs or income structures immediately before applying. If you are self-employed or earn variable income, ensure your records are up to date and organised.
Check That Your Accounts Are Well Presented
Overdrawn accounts, missed payments, or regular dishonour fees can weaken an application.
Ensuring accounts are in good order — with regular income deposits and minimal negative events — can improve how your finances are viewed.
Understand What You’re Comfortable Borrowing
Pre-approval is not just about what a lender will approve, but what feels comfortable for you.
Understanding realistic repayments based on your lifestyle helps prevent overcommitting and supports healthier long-term finances.
Get Advice Before You Apply
Knowing which areas to focus on — and which changes will have the biggest impact — can save time and stress.
Chase Douglas has extensive experience in mortgage lending and helps first-home buyers prepare their finances before pre-approval, including guidance on credit cards, BNPL facilities, debts, and savings.
Getting advice early means you can apply with confidence, knowing you’ve put your best foot forward.
Prepare First, Apply With Confidence
Taking the time to prepare your finances before applying for pre-approval can make the process smoother and improve your options as a first-home buyer.
If you’re thinking about buying your first home, now is the right time to
talk to Chase
and make sure you’re financially ready before approaching a lender.
Preparation today can make your path to home ownership far less stressful tomorrow.
