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.


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.


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

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Another lesson underscored by this example is that its risky to accept the bid of buyers whove failed to go through the mortgage preapproval process, unless those purchasers are making an all-cash offer.
Unless we see a reason, I might not bring it back yet,' Lopez said, referring to the preapproval process on SRP increases as a proactive measure against profiteering.
For example, Goodson allegedly concealed that he played multiple roles in the short sale transactions, including generating false preapproval letters from a New Jersey corporation he owned that purported to be a short-term lending company based in California.
For example, pharmacists are now allowed to take the licensing exam without preapproval from DORA, and mental health practitioners no longer need to gather hard copies of documentation for clinical hours.
Currently federal laws and regulations significantly restrict preapproval communications.
Besides, the civil laws in my client's country prohibit the citizens of that woman's country to get married [to their nationals] unless they obtain a preapproval from the authorities of that Gulf country.
Bar Ethics and Advertising Counsel Elizabeth Tarbert said any solicitation made by the lawyer, including in a chatroom, must have preapproval from the Bar.
Specific considerations include whether (1) the external auditors reported to the audit committee all matters that might reasonably be thought to bear on the audit firm's independence and safeguards in place to detect independence issues; (2) any differences in views between management and the external auditors were resolved in a professional manner; and (3) the lead auditor discussed safeguards in place to protect the independence, objectivity, and professional skepticism as part of the audit committee's preapproval for all nonaudit services.
That means rates charged to customers for Internet access won't be subject to preapproval.
The preapproval process involves review by the OPDP and provides an opportunity to receive feedback prior to the distribution of promotional material.
She has conducted numerous successful preapproval inspection audits and gap analysis, and is proficient in project management, product transfer and scale-up.