Pre-Approval Letter
A pre-approval letter is formal documentation from a lender confirming conditional willingness to provide mortgage financing up to a stated amount, issued after preliminary income and credit verification.
| Letter Contents | Information |
| Approved amount | Maximum loan capacity |
| Interest rate | Indicative or locked |
| Loan term | Duration options |
| Validity period | 60-90 days typical |
| Conditions | Requirements for final approval |
| Pre-Approval Process | Steps |
| Application submission | Basic financial details |
| Income verification | Salary certificates, statements |
| Credit check | AECB report review |
| Preliminary underwriting | Risk assessment |
| Letter issuance | 3-7 days typical |
| Strategic Value | Advantage |
| Offer credibility | Demonstrates financial capacity |
| Negotiating power | Seller confidence |
| Property search focus | Realistic price range |
| Closing speed | Reduced approval time |
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