InvestorDictionary.com
HomeDictionaryCategoriesBooks
Search for Terms:  
Browse by Category:  
Browse:  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z  # 

Pre-approval

What's the definition?

In lending, pre-approval has two meanings:

 

1. The first is that a lender, via public or proprietary information, feels that a potential borrower is completely credit worthy enough for a certain credit product, and approaches the potential customer with a guarantee that should they want that product, they would be guaranteed to get it. This rarely happens in the financial services industry, usually what happens is pre-qualification instead.

 

2. The second meaning has to do with mortgage lending. People interested in buying a house can often approach a lender, who will check their credit and verify their income, and then can guarantee they would be able to get a loan up to a certain amount. The people can then take a letter of pre approval from the lender, and when shopping for a home can have possibly an advantage over others because they can show the seller that they are guaranteed to be able to buy the house.







The infomation above is licensed under the GNU Free Documentation License and is derived from The Free Encyclopedia.com
Credit
Pre-qualification


Browse:  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z  # 
Copyright © 2010 InvestorDictionary.com - All rights reserved.