What Pre-Approval Really Means

Pre-approval is a conditional indication of borrowing capacity based on information available at the time of assessment.

It is not a guarantee that a loan will proceed to formal approval or settlement.

Nature of conditional approval

Pre-approval is typically issued:

  • before a specific property is assessed
  • subject to verification of documents
  • subject to valuation and policy confirmation
  • within defined time limits

Because key variables remain untested, outcomes can still change.

Information reliance

Pre-approval depends on:

  • accuracy of declared income and expenses
  • stability of employment
  • unchanged liabilities
  • consistent credit position

Any variation may alter the result.

Distinction from formal approval

Formal approval occurs only after:

  • full document verification
  • acceptable valuation
  • lender credit confirmation
  • satisfaction of all conditions

Until this stage, completion risk remains.

Purpose of pre-approval

Pre-approval provides transaction guidance,

not certainty of finance.

This page explains structural meaning only and does not assess individual applications.

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