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Glossary of Terms > P > PRE-APPROVAL

PRE-APPROVAL

When a borrower has completed a loan application and provided debt, income, and savings documentation and has had his/her application reviewed and approved by a representative of the lending institution. A pre-approval is usually done at a certain loan amount and making assumptions about what the interest rate will be at the time the loan is actually made. It also estimates the amount that will be paid for taxes, insurance and other expenses. Once a property is chosen, it must also meet the guidelines of the lender. See also "Pre-Qualification."

P Terms

PAYMENT CHANGE DATE

PERIODIC PAYMENT CAP

PERIODIC RATE CAP

PIGGYBACK LOAN

PITI

POINTS

PRE-APPROVAL

PRE-QUALIFICATION

PRECONSTRUCTION

PREPAYMENT

PREPAYMENT PENALTY

PRIME RATE

PRINCIPAL

PRINCIPAL, INTEREST, TAXES & INSURANCE (PITI)

PRIVATE MORTGAGE INSURANCE (PMI)

PROBATE

PROMISSORY NOTE

PROPERTY TAX

PURCHASE AGREEMENT