Getting a preapproval for a home loan allows you to know how much home you can afford. This can help give you an estimate on what your monthly payments could look like. In a Sellers’ market, this offers you some negotiation power. A seller is more likely to negotiate with a prospective buyer who has a preapproval letter over someone who doesn’t. The seller wants to feel secure knowing you can obtain home loan financing. Realtors also appreciate seeing the letter before showing you a home as it helps them know you are a qualified buyer and empowers them to find homes in your qualified purchase price range.