Generally, finance approval will be given in 2 stages:

  1. Pre-approval is provided when there are still outstanding items or ‘subject to’. You will almost always be given a pre-approval (as opposed to a ‘final’ approval) when you have not yet found a property to purchase as the finance will be conditional upon the bank/finance provider accepting the property as security for the loan.
  2. Final, Unconditional or Formal Approval is provided once all the ‘subject to’ terms are satisfied by the bank. It is the last step before loan documents are provided by the bank for signing then certified for settlement.