Pre-Approval (of a borrower)
Pre-approval is a document obtained from a lender or mortgage broker that attests to the general ability of a buyer/borrower to obtain a loan, without looking too deeply into their situation. Pre-approval is almost always a prerequisite for submitting an offer to a seller.
This pre-approval is not the same as the pre-approval term used in certain contracts that refers to a preliminary approval of a loan application (a much deeper, lengthy process) contingent upon a successful appraisal.
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