What is mortgage pre-approval?

Mortgage pre-approval is the first step in the mortgage process for buying a property.

It is when the bank reviews your application and issues a letter or email which will state that they have pre-approved you and will lend you the amount requested. This is generally valid for 60 days. This provides comfort that the mortgage approval has been secured on certain terms from the bank and confidence to negotiate on properties safe in the knowledge that matters can be concluded quickly.