Final answer:
A loan approval is when a lender provides a written commitment to lend a specific amount to a buyer after assessing their finances.
Step-by-step explanation:
When a lender looks at a buyer's finances and provides a written commitment to lend a specific amount, it is called a loan approval. This process involves assessing the buyer's credit history, income, and other financial factors to determine their eligibility for the loan.
For example, a buyer may submit their financial information to a bank for a mortgage loan. After reviewing the buyer's finances, the bank may issue a loan approval letter stating the amount they are willing to lend.