What is typically the first step a buyer takes when seeking to purchase a home?

Obtaining a mortgage pre-approval is a crucial initial step for a buyer in the home purchasing process. This step involves consulting with a lender to assess the buyer's financial situation and determine how much money they can borrow. Pre-approval not only helps buyers understand their budget, allowing them to focus their search on homes within their financial reach, but it also signals to sellers that the buyer is serious and financially able to purchase a home. This can enhance the buyer's negotiating position once they find a property they are interested in.

While finding a real estate agent, researching homes online, and contacting the seller can all be important parts of the buying process, they typically follow the financial assessment that pre-approval provides. Without pre-approval, buyers may waste time looking at properties they cannot afford or may miss out on opportunities if sellers prefer offers from pre-approved buyers. Therefore, securing pre-approval is an important first step before taking further actions in the home buying journey.