It is an acknowledgment by the bank of the pre-approval to grant the client a mortgage. This approval is not considered binding on the bank until all requirements for obtaining a mortgage are completed by the client per the terms and conditions of the bank on such type of credit services. Usually, the validity of this approval is 60 days from the date of informing the client of it.
Its importance lies in the client's knowledge of the financing limits with which the property can be purchased, in addition to the fact that the real estate developer looks at it as an indicator of the client's seriousness in buying.