When a bank or mortgage company provides a rate quote based on minimal information, they often quote an attractive rate without fully assessing if you qualify for the program. Whether this is just them being “hopeful” or an intentional bait and switch, it starts you off with the wrong expectations and can create financial distress.
If you get inaccurate information when determining how much house you can afford, you can get in over your head when your payments end up being higher than originally estimated. Or, you get caught short on closing costs because it required more out of pocket to get that attractive rate you were quoted.
The most important part of mortgage planning is determining how much how you can really afford based on your available funds for down payment and a comfortable monthly payment.