<P> The legal meaning however is varying depending on circumstances surrounding the overall context of the offer, and federal and state laws applied regarding individual consumer claims, and / or actions brought by consumer advocation agencies . </P> <P> The second meaning relates to mortgage lending . People interested in buying a house can often approach a lender, who will check their credit history and verify their income, and then can provide assurances they would be able to get a loan up to a certain amount . This pre-approval can then help a buyer find a home that is within their loan amount range . Buyers can ask for a letter of pre-approval from the lender, and when shopping for a home can have possibly an advantage over others because they can show the seller that they are more likely to be able to buy the house . Often real estate agents prefer to work with a buyer who has a pre-approval as it demonstrates that they are well - qualified to receive financing and are serious about buying a home . A pre-approval is based on the documentation the borrower supplies at the time of application, and any actual eligibility to receive the pre-approved loan depends on the terms and conditions of the pre-approval and ability to secure the loan before the pre-approval expires . </P>

What is the significance of being pre approved for a loan