Pre-Approval for a mortgage loan is a necessary early step for buying a home, unless you're going to pay all cash. A lender looks at your income, assets, debts, and credit history (among other factors) to decide how much money they would loan you to buy a home. It is important to note this is not a guarantee that they will give you a loan, or give you a loan at the terms they quote. They need to verify the information you provide, and you also need to maintain or improve your current financial levels (don't go out and buy a new car after you get pre-approved).
It also isn't a commitment from you to get a loan from that lender or for that amount. You can continue to shop around if you would like to compare rates or fees that they charge.
If you have any questions about buying, selling, or investing in real estate please get in touch with me; I'll be happy to help. If you have a term you want me to define, leave it in the comments!
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