Buyers need to get pre approved. There are 3 people who will benefit from your pre-approval: You, your Agent, and the seller from whom you eventually buy a home!

You: The mortgage pre-approval step is a relatively simple one, but it is a very important one. It begins the process of formally applying for a mortgage, and it gives everyone involved--especially you--a clear sense of the direction for which they should be headed.

Your Realtor:  Your Agent can spend more time looking for houses that "fit" and less time pursuing dead ends by knowing what your financial parameters are.  No matter how much you might want a 4000 square foot home for $300,000, if your qualifications say $125,000, your qualifications say $125,000.

The Seller: Pre-approval will strenghten your bargaining position. Pre-approval will help your offer to stand out in a  multiple offer scenario for the same house. Look at it from the seller's perspective. If you had 2 offers on the table for your house, one from a fully pre-approved buyer and the other from an "I'll get around to that soon" buyer--to which offer would you devote the most attention? Even if the pre-approved buyer's offer was $1000 less, would you take the chance on the buyer that perhaps may not be qualified? A smart seller should always take the more secure deal.