What Is An Approval And Pre Approval Process? Define!
The approval process should be seamless and should be crystal clear to both the borrower as well as the loan provider. Thus, it is important to understand the basic of the approval and pre-approval process to avoid any kind of misconceptions and future risks. The approval task can be cumbersome and sometimes the application is not even approved for the loan. The approval and pre-approval process ensures the lender’s willingness to lend the money and the applicant creditability to repay back the loan amount on time. Pre approval process: When you apply for a loan, the lender demands certain documents related to your credit status and monthly income. The pre approval process starts with filling up a loan application with the decided loan amount and stated interest rates. For the pre approval; requirement, the applicants needs to provide certain details such as: • Monthly income proof • Bank statements • Tax returns • Proof of loans and other debt •