Often people opt for loans to finance buying a new home. But the buyer can be in a fix if he is not sure whether his loan would be approved or if so, then till what amount.

Pre-approval refers to the process where the lender (bank) will check the credit history and verify the income of the borrower to determine whether they would be able to get a loan up to a certain amount. A pre-approval shows that a buyer is seriously interested to buy a house and also helps him find a home that is within their loan amount range.