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...... is your banks guarantee of the amount they will lend you toward the purchase of a home.
When you are ready to negotiate a price for a home, the seller will be more willing to accept your offer because you already have financing available. A seller would be more reluctant to accept an offer from someone who doesnt have the money yet to buy the home, because the offer can fall through if the buyer cant come up with the money at the time of closing.
The advantages of having mortgage pre-approval puts you in a better position to look for houses that you can afford because you already know how much money you can borrow and you already have financing in place when negotiating a price for a home.