01
What It Means
Pre-approval is a lender's conditional indication of how much they may be willing to finance, based on your income and commitments before a specific property is chosen.
02
Why It Matters
It helps you shop within a realistic budget and signals seriousness to sellers. It is conditional — subject to property valuation, full documentation and final approval — so it is not a guarantee of lending.
03
Simple Example
Before viewing properties, a buyer obtains pre-approval for an indicative amount and focuses their search on properties within that budget.
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