MOST DEFINITELY!!

Most mortgage lenders take the guess work out of applying for a loan by determining for you the amount you can afford to borrow. Usually, a good lender can get a basic idea of your financial situation over the phone, and can give you a preliminary pre-approval based on what information you provide verbally.  Then, they give you a printed document stating the maximum mortgage amount you qualify for based on your particular finances and income, and this document/letter can then be sent to the Seller or Seller's agent along with your contract offer.  Mortgage pre-approval establishes your price range and strengthens your buying position by letting the Seller know that you have already been pre-approved for the loan. It can also ease time constraints once the purchase agreement is signed between Buyer and Seller.

Do not confuse pre-qulification or pre-approval with absolute approval of a loan!  If you have some credit issues, you will probably need to get them 'cleaned up,' and a good loan officer will help you do so.  Complete and final approval of a loan usually does not occur until after the lender has put together the 'package' on your credit information, along with the contract for the particular home, and does a re-check of your credit information just prior to closing (to be certain you have not made a major credit purchase between the first time you met with them and closing -- that can badly skew your credit scores!)  Typically, it takes a lender 20-45 days to complete your 'package,' therefore, it usually takes approximately 20-45 days to close on and take possession of your new home.  (Be aware that some specific types of loans can take up to 60 days - FHA 203k, VA/Texas Vet.)

Consider these Scenarios:

You're out looking at homes. Your Real Estate Broker never mentions that you should get pre-approved and just ballparks what you can afford. Of course, the more house he shows you, the better he usually comes out. You find the perfect house and work out a deal with the Seller. Three weeks later, the lender informs you that the house is $10,000 over what you qualify for and does not approve your loan. The Seller has already bought another house. You've given notice where you're renting and told all your friends about the great house you bought. And then, there's the money you've already spent on inspections on a house you can't own.  (You need a new REALTOR!)

or,

You and your REALTOR have been working diligently finding that "perfect" home. A new listing comes on the market that's priced right and has got everything you've been looking for. You write an offer. Your REALTOR takes it to the listing agent, and is informed that another offer is coming in and the listing agent will have to present both offers simultaneously to the Seller. The other Buyer is pre-approved for his loan. Whose offer do you think the Seller will negotiate first??

Should You Get Pre-Approved for a Loan First??

Most Definitely!!