A pre-approved mortgage is the first step towards purchasing your new home. The lender will confirm in writing the maximum amount you can borrow in accordance to the proof of income, credit and debts that you provide.
The pre-authorization process does not guarantee the approval of a mortgage. Each loan application will be evaluated according to several criteria, including the state of the property and its market value. If the property you wish to purchase does not meet the criteria, your loan could be denied. Also, should your personal situation change since the pre-authorization, the loan may be refused.