Knowing how much money you need to borrow before going into the loan approval process will help you stick to a manageable loan amount. If you have an expense you’re looking to cover (i.e. replacing an appliance or home repairs), this may be easier, but if you’re considering debt consolidation or are looking for available cash, you may need to do some calculations.
You may qualify to borrow more money than you actually need. Having a set loan amount in your head before you go into the approval process can prevent you from borrowing more money than you planned on.