👉 In finance, a pre-approval letter or pre-approvement is a formal request for approval from a bank or lender to issue a loan. It typically includes detailed information about the borrower's financial situation and creditworthiness, as well as any necessary documentation such as documents of income (such as pay stubs) or employment history. Pre-approvals are often used by lenders before making a final decision on issuing a loan, allowing them to assess the borrower's risk and decide whether they should
