What is home loan pre-approval, conditional approval and full approval?

Home loan pre-approval is a non-binding agreement for a specified sum of money the bank or lender agrees to lend you. Pre-approval helps you to set your budget and know your lending limits when you are looking to purchase a property.

Once the bank or lender is satisfied that you can repay a loan they give you conditional approval for the property you wish to purchase.

Full approval occurs after the bank or lender values the property you wish to purchase and it is the formal approval required for you to purchase a property.