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Real Estate vocabulary · Mortgages & Financing

Pre-approval

Meaning in real estate, with examples

/ˌpriːəˈpruːvl/nounCommon term

In real estate, pre-approval means: A lender's written statement, given after checking a buyer's income, debts and credit history, that it is willing to lend up to a certain amount.

In Turkish: kredi ön onayı, ön onay

How it is used

Agents often ask buyers to get a mortgage pre-approval before viewings, because sellers take pre-approved buyers more seriously. It is stronger than a pre-qualification, which is only an estimate. Final approval still depends on the appraisal.

Example sentences

  1. Do you have a pre-approval letter we can send with your offer?

  2. They got pre-approved for up to 300,000 pounds.

Common collocations

  • get pre-approval
  • pre-approval letter
  • mortgage pre-approval
  • pre-approved buyer
  • mortgageA long-term loan used to buy a property, in which the property itself serves as security for the lender until the loan is paid back.
  • lenderA bank or other financial company that lends money, especially one that provides mortgages to home buyers.
  • offerThe price a buyer formally proposes to pay for a property, often with conditions such as a completion date or a successful inspection.
  • mortgage brokerAn adviser who compares loans from many lenders and helps buyers find and apply for a mortgage, paid by a fee, by the lender or both.

More terms: Mortgages & Financing

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