Glossary entry
Pre-approval
Pre-approval is a conditional indication from a lender that a borrower may be eligible for a loan, subject to verification and final assessment.
Category
Lending technology
Definition
How it differs from pre-qualification
Pre-approval typically uses stronger verification and may include more formal checks. It is still conditional and can change with new information or policy.
Operational implications
- Evidence capture for checks performed and conditions applied
- Clear expiry/validity rules and change handling
- Consistent messaging across customer and broker channels
Related terms
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