Don’t fall in love with a house unless you have a pre-approval for a loan. That is, a pre-approval from a lender that it will lend a specific amount to you.
Pre-approvals take time because lenders need to be satisfied as to income, loan serviceability, stability of employment, stability of residence, and no black marks appearing on the personal credit file. There must be no red flags.
Going house hunting.
Once you find a property to buy, the lender will need a valuation before they issue a final approval for a loan.
Because a valuation and final approval can take a week or two, real estate practice allows for buyers to sign before receiving final approval.
In Queensland and Western Australia, buyers can sign Contracts with 21 day subject to finance clause.
In New South Wales, buyers sign a Contract with a cooling off period of 5 business days (often extended to 10 days). This applies only to private treaty sales and where the vendor does not require a cooling off waiver (a 66W Certificate). No cooling off period applies to sales by public auction.
Pre-approvals are valid for 3 months. They are easily renewed if circumstances have not changed for the worse.
The video explains why you can risk your deposit if you sign a Contract without a pre-approval
Video link First a pre-approval, then go house hunting