Each time you renew or submit a pre-approval it will show as an enquiry on your credit report.
It doesn’t show an approve or a decline, just an enquiry. Lender dependant your pre-approval will last 3-6 months. |Your decision at the end of that time is either to:
– renew the pre-approval and know that your borrowing capacity is current with any policy changes, and that when you find a property the lender will just need contact details and shouldn’t need updated payslips/bank statements (not advisable for anyone with tight borrowing capacity, wanting to bid at auction or who wants a short finance clause)
– let your pre-approval lapse knowing it’s been reviewed once, and that you will need to provide updated documentation when you find a property (if you have a large servicing surplus this is typically fine provided you leave an ample timeframe for the lender to completely reassess in your finance clause).
What can impact your credit report is multiple pre-approvals / finance applications on the go with multiple banks, however it has been our experience that renewing pre-approvals in the way above up to a maximum of 4 times a year does not negatively impact a person’s ability to get a home loan.