Q:

What is an approval letter?

A:

An approval letter is any letter written to grant official approval of a request. Approval letters are typically written in response to requests for approval regarding employee days off, business expenses, building projects and financing.

One specific and common type of approval letter is the pre-approval letter provided by a mortgage lender to a prospective home buyer shopping for a new home. A pre-approval letter is issued after a mortgage lender has done due diligence to confirm the home buyer's financial wherewithal to make the purchase. Typically, a pre-approval letter states the amount the prospective buyer is approved to borrow. A pre-approval letter carries more weight than does a prequalification letter when making an offer on a house.


Is this answer helpful?

Similar Questions

  • Q:

    What is a rolling contract?

    A:

    A rolling contract is a contract that has no defined cancellation date and ends only upon the request of one of the involved parties. Rolling contracts are commonly used in business-to-business and business-to-consumer transactions, such as rental agreements and warranties.

    Full Answer >
    Filed Under:
  • Q:

    What is the difference between RFP and RFI?

    A:

    "A request for information, or RFI, is a document that a business organization sends to vendors to request for specific information or clarification on a service or product. On the other hand, a request for proposal, or RFP, is a document that a business organization sends to potential vendors to prompt for bids.

    Full Answer >
    Filed Under:
  • Q:

    What is a letter from the editor?

    A:

    Letters from the editor vary in subject matter and purpose, but they are generally an open letter written by the editor of a publication. The purpose is usually to address a given topic with the publication's readership.

    Full Answer >
    Filed Under:
  • Q:

    What is an appointment letter template?

    A:

    An appointment letter template is a document that provides an example of how an appointment letter should be written. Appointment letters are legally binding documents that offer employment to an individual for a predetermined salary and specific length of time. Appointment letters are used by a variety of businesses to hire contractors, and educational institutions also use appointment letters to hire faculty members.

    Full Answer >
    Filed Under:

Explore