A pre-approval is when a potential mortgage lender looks at your finances to find out the maximum amount they will lend you and what interest rate they will charge you.
With a pre-approval, you can:
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Know the maximum amount of a mortgage you could qualify for
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Lock in an interest rate for 60 to 120 days, depending on the lender
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Estimate your monthly mortgage payments
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Understand the terms & conditions for the mortgage