Preapproval

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When you are trying to buy property, you will almost certainly need to borrow money, which means getting a mortgage. This can be a long process. The first hurdle is to get approved for a mortgage, which means that a potential lender scrutinizes your financial situation to make sure you are capable of making the repayments. If the approval process takes too long, you might lose the property because someone else steps ahead of you with her own mortgage already arranged. To help avoid this you can sometimes get preapproved for the loan by a lender; the lender can perform the necessary financial investigation even before you have a property in mind. This means that when you want to buy something your loan approval process is largely completed. Finalizing the loan might be contingent upon nothing having changed in your financial circumstances.