Pre-approval
A lender's written statement that you qualify for a loan up to a certain amount after reviewing your credit, income and assets. Sellers usually expect one with an offer. Final approval still depends on the property and underwriting.
Also called: preapproval, pre-approval letter, preapproved
Related terms
A lender's rough estimate of how much you might borrow, often based on information you report without verification. It is a starting point, not a commitment, and carries less weight with sellers than a pre-approval.
The lender's review of your income, assets, credit and the property to decide whether to approve the loan. The underwriter often asks for more documents before issuing final approval.
A buyer's written proposal to buy a property at a stated price and terms. It becomes a binding contract only when the seller accepts it as written and both sides sign.
A number, usually from 300 to 850, that summarizes how you have handled debt. Lenders use it to decide whether to approve a loan and what rate and mortgage insurance cost to charge.
The person who helps you choose a loan, takes your application and guides it to closing. Loan officers must be licensed or registered through the NMLS.