Being pre-approved means you've actually been approved by a lender for a specific loan amount. When pre-approved, you will receive a letter that states your approved loan amount.

Can you be denied a loan after pre-approval?

You can certainly be denied for a mortgage loan after being pre-approved for it. ... The pre-approval process goes deeper. This is when the lender actually pulls your credit score, verifies your income, etc.

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.