Posted by River City on April 06, 2006 at 11:53:24:
What the bank has probably done is preapproved the applicant based on verification of certain items to close, along with a valuation of the property. If a prospective applicant has high credit scores, it is very unlikely that they will ever default on a mortgage loan.
It is common for lenders to preapprove applicants so they know how much of a loan they can qualify for. It helps them in their house hunting.