Buy Smart, Move Fast: How Pre-Approval is Changing the Property Game

• Pre-approval gives buyers a clear budget, reducing financial guesswork and helping them avoid homes they can’t afford.
• Sellers favour pre-approved buyers, speeding up deals and improving offer credibility in competitive markets.
• Pre-approval streamlines the loan process, boosts buyer confidence, and allows for faster, more decisive home-buying decisions.

Winning Keys: How Pre-Approval empowers Homebuyers and smooths the path to Ownership

In today’s competitive property market, savvy homebuyers are realising that the journey to homeownership no longer begins at a show house but with a pre-approval certificate in hand.

In South Africa, pre-approval has become a vital first step, not only offering clarity on affordability but also enhancing a buyer’s credibility with sellers.

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“Not only does pre-approval help each buyer understand their budget,” says Paul Stevens, CEO of Just Property, “but it also makes their offer more attractive to sellers.” This shift towards financial readiness is helping buyers move with greater confidence and success.

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Step-by-Step: How Pre-Approval Works

1. Understand Your Financial Standing
   Many first-time buyers make the mistake of overestimating their affordability, often ignoring hidden costs like insurance, taxes, and maintenance.
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   Applicants assume a high income alone qualifies them for a large bond. In reality, credit history, existing debt, and interest rate fluctuations all play a role in loan approval.
   Pre-approval corrects these misconceptions by giving buyers a verified, realistic financial picture.
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2. Gather and Submit Your Documents
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   The pre-approval process starts with documentation:
   
   • Proof of Income (e.g. Payslips or financial statements)
   • Identification Documents
   • Recent Bank Statements
     
     A bond originator will then conduct a credit check and assess your affordability based on this information.
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     “Once all the paperwork is submitted, pre-approval can often be completed within days,” explains  Bradd Bendall, National Sales Head of Betterbond. However, incomplete documentation or issues in your credit report can cause delays, making it crucial to handle these before placing an offer.
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3. Receive Your Pre-Approval Certificate
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   Once approved, buyers receive a pre-approval certificate typically valid for 60 to 90 days. This confirms your financial readiness and allows you to shop with confidence.
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   “There’s a big difference between a quick affordability check and formal pre-approval,” warns Bendall. “With pre-approval, you’re working with verified numbers and you have the paperwork to prove it.”
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   The Power of Pre-Approval: Why it Matters
   According to Piet Burger of Just Property George, “Pre-approval puts agents and buyers on the same page with regard to price range.” This ensures buyers focus only on homes they can truly afford, reducing emotional investment in properties outside their budget.

Top 3 Benefits of Pre-Approval

1. Know Your Budget: Avoid disappointment by focusing only on realistically affordable properties.
2. Boost Negotiation Power: Sellers prioritise pre-approved buyers, especially in multiple-offer scenarios.
3. Build Confidence: With clear limits in place, buyers act faster and with less financial stress.

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Bendall adds, “Pre-approval gives buyers a psychological edge. It lets them act decisively and avoid second-guessing.”

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Advice for Buyers: What to Know Going Forward

Renew When Needed

If your search extends beyond the certificate’s validity period, renew it. Market conditions and personal finances can change interest rate shifts, job changes, or added debts could all impact bond eligibility.

Pre-Approval Speeds Up the Final Bond Application

Another major advantage? Efficiency. “Once a buyer signs an offer to purchase after pre-approval, we already have all the necessary documents. That makes the full bond application process much faster,” says Bendall.

Embrace Online Tools

“Today, buyers can even apply for pre-approval online—any time, day or night,” adds Bendall. “We guide them through the process, so it’s never overwhelming. It’s never been easier to get started.”

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A Smarter Way to Buy

Pre-approval has transformed the homebuying experience from speculative to strategic. It empowers buyers to stay within budget, strengthens their offers, and reassures sellers that financing won’t fall through.
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With 95% of pre-approved BetterBond clients going on to secure bond approval, the message is clear: If you're serious about buying, start with pre-approval.
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By eliminating uncertainty and improving transparency, pre-approval paves the way for smoother, faster, and more successful property transactions for both buyers and sellers alike.