Reviewing a withdrawn application to purchase farm equipment. The customer was searching for a tractor and came to the bank a while back to see how much they could borrower. The borrower completed an application and supplied tax returns. The lender did the basic underwriting (checked income and credit) to determine how much the bank could lend.

Loan Officer tells the customer they are conditionally approved, but we need collateral before the final determination is made.

The bank does not have a pre-approval program. To me, this is pre- approval. Is this acceptable?