A pre-approved home loan refers to the bank granting an in-principal approval to home loan borrowers who have not identified a property yet. This is however done after a thorough examination of credit worthiness of the borrower, while the approved amount depends upon several factors including age, income, savings history, credit score etc. A pre-approved home loan helps a customer in planning the purchase of the property. Since the customer is aware of the funds available to him, he can buy a property within his budget. However, the loan approved is valid for a particular period. In case the customer approaches for disbursement after that period, the bank will do a re-assessment of his eligibility. This way he could even get a higher loan amount if he desires provided his income would have risen during that period.