In lending, pre-approval is the pre-qualification for a loan or mortgage of a certain value range. For a general loan a lender, via public or proprietary information, feels that a potential borrower is ...

Is being pre-approved good?

Getting preapproved may be a better indication that you'll get approved for a loan or card—but it depends on the process. ... The mortgage or auto lender could take some time to review and verify these documents, and they may then offer you a loan preapproval letter that's good for several months.

Is a pre-approval a guarantee?

Preapproval does not guarantee a mortgage will be approved. It does, however, involve a thorough review of your financial background and sets realistic parameters around how much you can afford to borrow if your application is approved.