What does Formal Approval mean
When a home loan application is formally approved it means that all conditions and criteria required to assess a loan application have been supplied, assessed and approved.
It is only when a home loan application is formally approved that the borrower can feel comfortable that they can obtain a home loan.
If you are buying a property it is advisable not to exchange contracts until such time that your loan has been formally approved
It must be noted that a home loan provider can decline a loan after the loan has been formally approved should any of the information provided to assess the loan application turn out to be false or inaccurate.
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