Finance
A Florida buyer's pre-approval letter from a lender:
AGuarantees the loan will be made at the stated terms
BProvides an estimate of the loan amount the buyer is likely to qualify for based on a preliminary review✓ Correct
CIs legally binding on the lender
DIs the same as final loan approval
Explanation
A pre-approval letter is based on a preliminary review of the buyer's financial information. It does NOT guarantee a loan — the lender still must verify documentation and the property must appraise. A formal commitment letter (after underwriting) provides stronger assurance.
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