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Preapproval Letter

By , About.com Guide

Definition: A letter from a lender that says the borrower’s credit, bank references and employment have been verified. The letter is not binding on the lender because it is subject to other conditions such as an appraisal of the property.

At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.

Examples:
A preapproval letter from a lender carries substantial weight with a seller because it shows the seller the buyer is serious.

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