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A Loan Approval Letter, or Pre-Approval Letter, is a document that states the loan amount a lender is willing to make to a borrower.
A loan approval letter provides documentation of exactly how much mortgage you have been approved to borrow. And this documented evidence shows both Realtors and sellers that you are serious in your pursuit of a property. A preapproval letter can make a big difference for homebuyers.
Sources: https://www.rubyhome.com/blog/pre-approval-letter-sample/, https://www.hsh.com/finance/mortgage/preapproval-letter.html
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