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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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Preapprovals are frequently issued within 48 hours, with closings occurring in as little as 3 weeks.
Tool enables dealers to send customers preapprovals and targeted marketing campaigns quickly, affordably and when it's best for business
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A); preapprovals that resulted in loans are included in the count of loan extensions cited earlier.
In addition, all other services, including tax services, are permissible only if preapproved by the issuer's audit committee and all such preapprovals must be disclosed in the issuer's periodic reports to the SEC.
For one thing, more managed care plans have loosened their utilization review requirements in the past few years, making it easier for patients to visit specialists without preapprovals.
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After promising 24-hour loan preapprovals along with a free loan analysis, with no cost or obligation, the site informs prospects to complete and e-mail their application.
LoanMarq's milestones include all typical stages and elements of the loan process such as preapprovals, credit reports, rate lock expiration date, disclosures due, and final inspection due, and is able to manage first and second mortgages simultaneously.
8220;I have received a great deal amount of feedback from realtors stating that preapproved borrowers were not able to get financing due to incorrect preapprovals.
Schools can use ELITE(SM) to research loans, submit PLUS preapprovals (instant online decision), and submit loan updates, among other features.