Skip to content

Glossary

Pre-approval

Also called: mortgage pre-approval

A lender’s conditional commitment to a loan amount for a buyer.

A mortgage pre-approval is a lender’s written estimate of how much a buyer can borrow, based on a review of their finances. It signals that a buyer is serious and close to being able to make an offer.

At an open house, a visitor who is pre-approved, has a short timeline, and is unrepresented is the strongest lead the event can produce. Asking about pre-approval as an optional field lets serious buyers self-identify without pressuring casual ones.