When buying a property, what should a buyer do first?

The first step a buyer should take when purchasing a property is to get pre-approved for a mortgage. This process involves a lender reviewing the buyer's financial situation, including income, credit score, and debts, to determine how much they can afford to borrow. Being pre-approved not only gives buyers a clear understanding of their budget but also strengthens their position when making an offer. Sellers are more inclined to negotiate with a buyer who has pre-approval because it demonstrates serious intent and financial backing.

Expertise in financing is crucial as it directs the entire home-buying process. After being pre-approved, buyers can more effectively search for suitable properties within their price range, contact real estate agents with specific criteria in mind, and ultimately make more informed offers.

Searching for listings and contacting a real estate agent are important steps as well, but without pre-approval, buyers may waste time looking at homes they cannot afford. Making an offer on a property without first understanding one's financing options could lead to complications or disappointments down the line, especially if financing falls through. Therefore, securing a mortgage pre-approval is the foundational step in the home-buying journey.