Pre-approval can help you plan a property search, but it does not mean the lender has completed every check. For a self-employed borrower, the useful questions are: what income has been assessed, which conditions remain, and has anything changed since the decision?
This guide helps you understand the next conversation to have with your broker or lender. For the records to prepare, use our self-employed home loan checklist.
Is it an estimate or a lender decision?
Start with the document or message you actually have. Who issued it? Does it give an estimate, or record a lender's conditional decision? What does it say has been checked?
A calculator result cannot answer those questions by itself. For example, Westpac's borrowing calculator says its result is an estimate, not an offer of credit or pre-qualification. Its full-application calculation may differ.
Westpac also distinguishes an initial online indication from approval in principle, which involves lender assessment and may require further financial proof. Self-employed applicants may need supporting information before an indicative amount is available. Other lenders' processes need checking on their own terms.
Hypothetical example: a sole trader enters business deposits into a calculator and saves the result. No lender has assessed the income or issued a decision. The next step is to clarify what income evidence the lender needs, rather than call that number approved borrowing.
Which income and property checks are still open?
Read the conditions attached to the actual decision. If the wording is unclear, ask the lender what remains outstanding and how it will confirm completion. Do not assume that sending a document means a condition has been satisfied.
ASIC Moneysmart explains that pre-approval does not guarantee the loan: the lender still assesses your circumstances and the property before final approval. Westpac's self-employed application process, for example, places property valuation and other verification before full approval.
Keep income and property questions separate. Your business records may be ready while the selected property is still unassessed. Equally, a property valuation does not resolve missing income evidence. The conditions in your lender's decision are the starting point; a general guide cannot provide an exhaustive list for your application.
What if the business changes after pre-approval?
Westpac's pre-approval guidance says a final outcome can differ when finances, market conditions or lending policies change. For a self-employed applicant, useful questions include whether a changed contract, trading results, business structure or new commitment affects the earlier assessment. These are prompts for discussion, not a universal reassessment rule.
Hypothetical example: a company owner has a conditional decision with updated company financials and property assessment still outstanding. A major recurring contract then ends. The borrower should explain the change and ask what current evidence and reconfirmation are needed. Neither the earlier amount nor the change alone tells them the lender's eventual decision.
Does an unexpired decision settle the question?
Check the expiry and renewal conditions in your own decision. An unexpired date does not establish that the lender has accepted changes since its assessment. Ask whether the decision remains current for your circumstances and intended property, and what needs updating if more time is required. Do not assume that a renewal request has been approved.
What should you ask next?
Bring the decision or estimate into the conversation and ask:
- What has actually been assessed, and what is still only an estimate?
- Which income, property or other conditions remain open?
- Do any changes since the decision require updated evidence or reassessment?
- What is the current expiry, and who will confirm the next step?
For any unanswered item, keep it marked as unknown until it is confirmed. Ask whether the proposed application step involves a credit enquiry; do not assume that every online indication or pre-approval process works the same way.
Flexdoc can help explain your financial position, identify relevant lender requirements and coordinate the application process. Explore our residential lending service or book a conversation about your next property move. The lender makes the credit decision. This is general information, not confirmation of approval or settlement.