Preapproval

(redirected from Pre-Approvals)

Preapproval

A commitment by a mortgage lender to provide a loan with a certain monthly payment to a borrower. A lender offers pre-approvals in hopes that the borrower to whom it is offered will use that lender in securing a mortgage. It should be noted that, while the monthly payment is fixed, the interest rate and therefore the total amount available to be borrowed are not. This can limit the potential borrower's options as he/she seeks to buy real estate.

Preapproval.

When you're preapproved for a mortgage, the lender guarantees in advance the maximum you can borrow, provided your financial situation doesn't change before you find a home.

You'll need to fill out a mortgage application with the lender to be pre-approved, as well as provide verification of a regular source of income and authorize a credit check. Then the lender provides a letter confirming how much you'll be able to borrow.

The preapproval process usually takes a week or two, but it may take only a few minutes if you apply for a mortgage online. Some, but not all, lenders charge a fee for preapproval.

Preapproval is not a binding commitment for either the buyer or lender, but it can give you a competitive advantage. You know in advance how much you can afford, and sellers are confident your mortgage application won't be turned down. Plus it can speed the process of closing the sale.

If you're a first-time homebuyer or you're self-employed, it may be a good idea to consider getting preapproved.

preapproval

The practice of obtaining lender approval for a mortgage loan up to a certain specified amount and then shopping for an appropriate property.

Mentioned in ?
References in periodicals archive ?
All too many company CEOs and PRs in the Middle East region believe that copy pre-approvals - i.
Barclaycard have joined Capital One, MBNA, Virgin Money and New Day to offer pre-approvals to those who search and apply for credit cards via MONEYSUPERMARKET.
Barclaycard has joined the likes of Capital One, MBNA, Virgin Money and New Day to offer pre-approvals to those who search and apply for credit cards via MONEYSUPERMARKET.
Hauck added, "We, too, are providing multiple approval letters, go as long as possible with 90-day pre-approvals and up to 60-day locks, and look for ways to incent members to not only get pre-approved by us to buy their dream homes but close their loan with us.
Pre-approvals in the UAE have a lifespan of a little over a couple of months.
The fact operators and their vehicles now need to gain pre-approval is good for the industry, and the five-year restriction on pre-approvals will make it harder to operate outside the law.
The automated Pre-Approval program will allow First Ohio to generate online consumer loan pre-approvals via the Internet using Fannie Mae Desktop Underwriter.
Three issues which had been holding up a deal were the ownership of land, compensation for relocation of farmers within the buffer range of the space port and government pre-approvals.
Loan Generation Services is a process that credit unions use to capture member loan pre-approvals via the branch, phone or Web and make them accessible to members and auto dealers via the Internet.
From early credit checks, loan pre-approvals and interviews with prospective buyers to help evaluate their individual needs, to organizing events for the residential brokerage community, the right mortgage broker can significantly expedite the sales process.
Aimbridge Lending Solutions([R]), an integrated provider of multi-channel, multi-lender auto buying and lending services, introduced its Loan Generation Services, a process to capture member loan pre-approvals via branch, phone or Web and make them accessible to members and auto dealers via the Internet.
Testing includes pre-approvals, seeds and split tests.