Pre-approval
Also called: preapproval, pre approval
A lender’s conditional commitment to lend after reviewing your credit, income, and assets: stronger than a pre-qualification.
A pre-approval follows an application and a review of actual documentation, and normally includes an automated underwriting decision. It is what a listing agent expects to see attached to an offer.
It is still conditional. Final approval depends on the appraisal, title, and a re-verification of your credit and employment before closing, which is why new debt during underwriting can undo one.
Related terms
- Pre-qualificationAn early estimate of what you might borrow, based on information you provide rather than verified documentation.
- UnderwritingThe lender’s review of your credit, income, assets, and the property to decide whether the loan can be made.
- DTI (Debt-to-Income Ratio)The share of your gross monthly income taken up by monthly debt payments, including the proposed housing payment.
- Rate lockA lender’s commitment to hold a quoted interest rate for a set number of days while your loan is processed.
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Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.
Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. Licensing and disclosures