Definition
A lender's conditional commitment to lend a specified amount based on verified credit, income, and assets.
Example
A fully underwritten pre-approval carried far more weight with the listing agent than a pre-qualification.
Related terms
Frequently asked questions
What does Pre-Approval mean in real estate?
A lender's conditional commitment to lend a specified amount based on verified credit, income, and assets.
How is Pre-Approval used in practice?
A fully underwritten pre-approval carried far more weight with the listing agent than a pre-qualification.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.