What is Pre-Approval?
Pre-approval is a lender's indicative agreement to lend you a specified amount, subject to conditions (usually valuation, employment confirmation, and updated financials). Also called conditional approval or indicative approval. Typically valid for 90 days.
Why it matters for you
Pre-approval gives you negotiating confidence, but it's not binding. Auction purchases require unconditional approval — pre-approval isn't enough. Always check what conditions remain: a pre-approval with "subject to satisfactory valuation" is very different from one with "subject to final doc review only."
Last updated: April 2026