Pre-Approval (of a loan application)
Pre-approval, in certain states, refers to a soft commitment from a lender that they will fund a loan provided certain conditions are met. These conditions can include a satisfactory appraisal.
Additionally, lenders generally bar any material change in the property, transaction, or any part of the borrower(s)' personal financial situation as a condition of the pre-approval.
This is not the same as the 'pre-approval' document buyers often obtain long before they apply for their loan.
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