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Definition of 'Pre-Approval'
An evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan from the lender, or the maximum amount that the lender would be willing to lend. The pre-approval process involves a thorough look into the income and expenses of the borrower, including a look at the borrower's credit report and score.
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Investopedia explains 'Pre-Approval'
The pre-approval process involves a confirmation of income and a credit check on the borrower. As long as no major income or credit changes occur between the time of pre-approval and the actual purchase of a home, the dollar amount of pre-approval can be expected to remain the same. The process may take anywhere from a few minutes (for an online lending application) to a couple of weeks. A nonrefundable fee may be charged for the process.
A pre-approved mortgage is still subject to review once a specific property has been chosen, so the dollar amount is not guaranteed. A pre-approval may be lowered or even revoked if the property in question may be difficult to resell in the real estate market due to preconditions, location and other factors.
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Search results for 'Pre-Approval'
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http://www.investopedia.com/slide-show/5-steps-to-attain-mortgage/pre-approval.aspx
... 2. Pre-Approval. The pre-approval process is more formal than the
pre-qualification process. With pre-approval, the lender checks ...
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http://financialedge.investopedia.com/financial-edge/0411/5-Things-You-Need-To-Be-Pre-Approved-For-A-Mortgage.aspx
... open house. Potential buyers benefit in several ways by consulting with
a lender and obtaining a pre-approval letter. First, they ...
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http://www.investopedia.com/articles/pf/05/032205.asp
... Pre-Approval The pre-approval process is more formal than the pre-qualification
process. With pre-approval, the lender checks your ...
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http://www.investopedia.com/slide-show/5-steps-to-attain-mortgage
... 2. Pre-Approval. The pre-approval process is more formal than the
pre-qualification process. With pre-approval, the lender checks ...
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http://www.investopedia.com/slide-show/5-steps-to-attain-mortgage/pre-qualify.aspx
... 2. Pre-Approval. The pre-approval process is more formal than the
pre-qualification process. With pre-approval, the lender checks ...
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http://www.investopedia.com/slide-show/5-steps-to-attain-mortgage/mortgage-brokers.aspx
... 2. Pre-Approval. The pre-approval process is more formal than the
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http://www.investopedia.com/slide-show/5-steps-to-attain-mortgage/banks.aspx
... 2. Pre-Approval. The pre-approval process is more formal than the
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http://www.investopedia.com/university/mortgage/mortgage7.asp
... (For related reading, check out How Credit Cards Affect Your Credit Rating.)
Pre-Qualification and Pre-Approval To get a good idea of how much you can borrow ...
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http://www.investopedia.com/slide-show/5-steps-to-attain-mortgage/online-loans.aspx
... 2. Pre-Approval. The pre-approval process is more formal than the
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http://www.investopedia.com/articles/basics/07/prequalified-approved.asp
... With pre-approval, you will receive a conditional commitment in writing for an exact
loan amount, allowing you to look for a home at or below that price level. ...
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