Pre-Approval – A preliminary approval for a lender to loan money to a borrower. This generally means a borrower has provided full income and expense verification and has been approved for a loan. A pre-approval is always based on property approval and several other conditions such as an appraisal.

  • Example: The first thing you should do when starting a home search is to get a pre-approval from a lender so the sellers will know you can get a loan to purchase the home.
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