Question:

What does it mean to be 'pre approved' for a loan.

by Guest66246  |  earlier

0 LIKES UnLike

Hi, my partner applied for a loan, he was then accepted by a certain company, he was then told confirmation would come and he had to sign and send back. When this arrived it was a pre approval.. Does this mean he hasnt been accepted? Thanks in advance

 Tags:

   Report

6 ANSWERS


  1. It is, essentially, an agreement by the lender to make a future loan. It signifies that they have already reviewed and approved the borrower's creditworthiness.


  2. It is a loan approval.  But you still need to meet the conditions to have the loan funded.  If you lose your job before closing they wont give you the money.

  3. it just means that everything is ok with it just now until they look at further information, providing credit score, income and stuff are ok then it will go through. Mostly all companies will say a loan is pre approved but that doesn't mean they have to pay out  

  4. Pre approved means that the lender (it could be your bank or credit card company or any other company that you had an account with) already have your details, and provided those details are correct, they will lend you a certain amount.

    Unfortunately, some companies use this as "spam" and send out thousands of letters telling you that you are pre approved and thus get you to apply for a card or a loan. You will know if you are pre-approved or not because if you have never heard of the company, there is a chance that it is a ploy to get you to apply.

    When you are pre-approved, provided your circumstances have not changed, you will get the loan when you apply for it in the near future.


  5. its Marketing jargon for We chose you.

    if he started tha application it means he has already been checked and the loan will be given once they get the forms back.


  6. Capital One Visa Credit Card

    at

    http://capitalvisacard.blogspot.com/

Question Stats

Latest activity: earlier.
This question has 6 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.
Unanswered Questions