Why do I need a mortgage preapproval?

Most real estate agents and sellers won’t take you seriously without a preapproval letter. Preapproval shows that a lender reviewed your finances and has determined that you will be able to get a loan for your price range. Without a preapproval, not only do you come across as unprepared and inexperienced, but agents will often assume that you’re not a serious buyer or your home dreams are bigger than you can afford.