Pre-Approval
Lending & MortgagesA lender's conditional commitment to lend a specific amount based on a review of your finances.
Example
Example: You apply for mortgage pre-approval. The lender verifies your income ($90,000), checks your credit (720), and reviews your assets ($50,000 savings). They issue a pre-approval letter stating you qualify for up to $380,000. This letter makes your offer stronger than buyers without one — sellers know your financing is solid. Pre-approval is typically valid for 60-90 days.