What Is the First Step in Buying a Home?

Buying a home is one of the biggest milestones in life. Whether it’s your first place or your forever home, the process can feel both exciting and overwhelming. With so many details to manage—budgets, neighborhoods, inspections, closing costs—it’s natural to wonder: What is the first step in buying a home?

The short answer: the first step in buying a home is getting pre-approved for a mortgage.

But there’s more to it than just filling out a form with a lender. Pre-approval sets the foundation for your entire home buying journey. In this blog, we’ll break down what pre-approval is, why it matters, and how it ties into everything else you’ll need to do as a buyer in Central Florida and beyond. By the end, you’ll have a clear roadmap to take that exciting first step with confidence.

What Is the First Step in Buying a Home? Pre-Approval Explained

It Shows You’re a Serious Buyer

In today’s competitive real estate market, sellers want to know that buyers aren’t just browsing. When you submit an offer with a pre-approval letter attached, you’re telling the seller, “I’ve already done the financial homework, and I can actually buy this home.” Without pre-approval, your offer may not even get considered.

It Sets Your Budget

It’s easy to get caught up scrolling through listings and dreaming about that gourmet kitchen or backyard pool. But until you know what you can afford, shopping for a home is like shopping without checking your wallet. Pre-approval gives you a realistic budget range so you can focus on homes that truly fit your financial picture.

It Saves Time Later

Pre-approval streamlines the process once you’re under contract. Since your lender has already reviewed your financial information, you’re a step ahead when it comes to final loan approval. This can shave days—or even weeks—off your closing timeline.

Why Pre-Approval Is the First Step to Buying a House

You might hear both “pre-qualification” and “pre-approval” thrown around. They’re not the same:

• Pre-qualification: A quick estimate based on the information you provide (like income and debts). It’s a starting point but doesn’t carry much weight with sellers.

• Pre-approval: A deeper review where the lender verifies your financial documents, runs a credit check, and provides a conditional commitment for the amount they’re willing to lend.

Think of pre-qualification as a handshake, and pre-approval as a signed note from the bank. If you’re serious about buying, pre-approval is what you need.

What Documents Do You Need for Pre-Approval?

Here’s what most lenders will ask for:

1. Proof of income – Pay stubs, W-2s, or tax returns if you’re self-employed.

2. Proof of assets – Bank statements, retirement accounts, or investments.

3. Credit information – They’ll pull your credit report to check your score and history.

4. Employment verification – A letter from your employer or recent pay stubs.

5. Photo ID – To verify your identity.

Having these documents ready speeds up the process and shows your lender you’re organized and ready to move forward.

How Your Credit Score Affects the First Step in Buying a Home

Your credit score isn’t just a number—it’s a key factor in the kind of loan you qualify for and the interest rate you’ll pay.

• Excellent (740 and above): You’ll likely qualify for the best rates.

• Good (670–739): Solid standing with competitive rates.

• Fair (580–669): You may still qualify, but expect higher rates.

• Below 580: Options are more limited, but programs like FHA loans could still work.

If your score isn’t where you want it to be, don’t worry. Many buyers take a few months to boost their credit before starting the home search. Paying down debt, avoiding new credit inquiries, and checking your report for errors are simple ways to raise your score.

How Much Can You Afford?

Pre-approval will give you a maximum loan amount, but that doesn’t mean you should spend every penny. A good rule of thumb: your monthly housing costs (mortgage, taxes, insurance, HOA fees) should be no more than 28–30% of your gross monthly income.

Here’s a quick example:

• Household income: $90,000/year ($7,500/month)

• 30% of income = $2,250/month

• If your pre-approval allows for a $400,000 loan, make sure the monthly payment fits within that budget.

Remember to factor in extra costs like maintenance, utilities, and moving expenses.

First Step in Buying a Home: Pre-Approval vs. Pre-Qualification

Once pre-approved, here’s how it fits into the full buying process:

1. Get pre-approved – Establish your budget and show sellers you’re serious.

2. Hire a REALTOR® – Your agent helps you find homes, schedule tours, and negotiate offers.

3. Start house hunting – Focus on properties that fit your price range and lifestyle.

4. Make an offer – Backed by your pre-approval letter.

5. Inspection and appraisal – Protects you and ensures the home is worth what you’re paying.

6. Finalize your loan – Underwriting completes the process.

7. Close on your home – Sign the papers, get the keys, and celebrate!

By starting with pre-approval, each step after becomes clearer and less stressful.

Buying a Home in Central Florida: Why Pre-Approval Matters Even More

In markets like Orlando, Winter Park, and Tampa, homes can still move quickly—especially in desirable neighborhoods. Sellers may receive multiple offers, and those without pre-approval letters often get pushed aside.

Beyond that, Central Florida has unique factors like:

• Homeowners insurance costs (especially with storms and older homes).

• HOA and condo fees that vary widely between communities.

• Tourism-driven rental potential for certain areas, which can appeal to investors.

Having pre-approval shows you’re ready to compete and gives you leverage when negotiating in these high-demand areas.

Taking the First Step With Confidence

So, what is the first step in buying a home? It’s simple: getting pre-approved for a mortgage. By starting here, you’ll know your budget, prove your seriousness to sellers, and set yourself up for a smoother buying process.

If you’re thinking about buying in Central Florida, the best move you can make today is reaching out to a trusted REALTOR® and a local lender. Together, they’ll help you map out your options, prepare your paperwork, and get you ready to start house hunting with confidence.

Ready to Start Your Home Buying Journey?

At The Nickley Group, we’ve guided thousands of families through the home buying process in Orlando, Tampa, and across Central Florida. Our team works closely with trusted local lenders to make sure you’re pre-approved, prepared, and ready to make a strong offer when the right home comes along.

👉 Schedule a free buyer consultation today and let’s take that first step in buying a home together.