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What does it mean to be 'pre approved' for a loan. Pre approved means that the lender (it could be your bank or credit card company or any other company that you had an account with) already have your details, and provided those details are correct, they will lend you a certain amount.
It's always good to be pre-approved before seriously shopping, as you need to put the horse (mortgage) before the cart (house), plus most real estate agents won't take you too seriously if they aren't sure you are pre-approved. During the pre-approval process your financials, credit and employment are all checked out.