A lender's conditional commitment to loan a specific amount, based on a review of your finances.
Pre-approval involves the lender verifying income, assets, credit, and debt, resulting in a letter stating how much they're willing to lend, which strengthens an offer in a competitive housing market. Pre-approvals typically expire after 60-90 days and don't guarantee final loan approval, which still depends on the specific property and updated financial checks at closing.
Not to be confused with: Pre-qualification, which is a faster, less rigorous, non-binding estimate based on self-reported information.
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