Pre-Approved or Pre-Qualified

Pre-Approved or Pre-Qualified

evidence that a potential borrower has passed a preliminary credit screening. A pre-approval from a lender shows that a potential borrower has a solid credit history and is qualified for a mortgage loan of a specified size. In a competitive market, a pre-approval letter can provide greater negotiating clout with a seller, as it can give the seller confidence that borrower is financially capable of completing a purchase.