• You know how much you can borrow
• You have the peace of mind knowing that you finance is pre approved.
• A real estate agent may take your offer more seriously, knowing that you have pre-approved finance in place.
• The pre-approved finance may give you more negotiating power on the property you are thinking of purchasing, as your finance has been pre-approved, giving the seller more confidence in your finance application.
• You will know the costs of the property purchase, things like transfer stamp duty, any mortgage insurance fee, if applicable, etc.

Because you have a pre-approval in place, most banks and lenders, will be quicker assessing your home loan application, as they have already done part of the work with your pre approval application.

A pre-approved mortgage application doesn’t always mean that your home loan will be approved, once you have found a property. The bank or lender will still generally speaking value the property you have brought, re check your paperwork, and do employment checks.  Generally speaking though, if your home loan has been pre-approved, your formal finance application (when your find the property), should be more than likely approved.