1. Know Your Spending Limit This letter tells you how much money the bank will let you borrow. It's like knowing how much money you have in your wallet before you go shopping. This helps you plan better, so you don't end up wanting to build something you can't afford.  

2. Shows You Mean Business 
   When you begin talking to designers and contractors who will help you build your dream home, showing them a pre-approval letter proves to them that you have the money for the project. It's showing them you're serious and not just making plans without money to fund the project. 

3. Makes Buying Land Easier If you're looking to buy land, or a plot, for your dream home having a pre-approval letter will give you a leg up on the competition. It shows sellers that you're ready with the money and serious about buying. Buying land or a property can sometimes take a long time, especially if many people want the same place. But, if you have a pre-approval letter, sellers see that you're already on your way with getting a loan. This makes them more likely to want to sell to you because they think the sale will be quicker and easier. 

4. Learn the Rules of Your Loan The pre-approval letter also tells you important information about the loan, like how long you have to pay it back and what the interest rate is. This helps you understand what you're agreeing to before you say yes. 

5. Helps You Make Smart Choices 
   With this letter, you'll know exactly how much money you can use. This helps you make good choices about what you can afford to build.

Even though this letter is a great first step, it doesn't mean everything is set in stone. It's like being in the semifinals of a game – you're close, but there's still more to check before you win the final approval.