Should I get pre-approved for a mortgage?
Unlike other countries in the world, Germany does not offer formal pre-approvals. There are, however, two methods with which we work with all German lenders to reduce uncertainty around your eligibility.
Prescoring: an automated approach that requires you to transfer your basic personal, financial information through an online self-disclosure. We then run an automated scoring system that will approve or reject the request.
Pre-check: a manual approach that requires a similar self-disclosure and exposé to be sent out directly to selected lenders.
Please be aware, that in Germany, neither prescoring nor pre-checking your eligibility is legally binding. Additionally, neither method has any negative impact on your SCHUFA score. Both options do neutral checks and do not mean official financing applications or requests.
The formal loan contract can only be approved and created after the final application is sent. This includes the complete documentation, covering your personal information as well as the property information.