It is a crucial part of the process.
Good credit is essential when buying a home. A poor credit score can lead to a higher interest rate and, by extension, a higher monthly payment. Dings on your credit—e.g., an old debt that's been turned over to a collection agency, or a high credit card balance—can even prevent you from buying a home.
Before setting foot in a home, find a reputable lender and get pre-approved. Let us be clear: This is not a simple pre-qualification; a pre-approval uncovers exactly how much house you can afford and is an essential component of a successful offer letter.
Don't have a lender yet? Don't worry. Your agent can recommend local lenders, or you can seek out recommendations from other homeowners. Once you've settled on a lender you like, have the lender review your finances thoroughly to point out any concerns.
But jumping straight into the deep end could land you in trouble—both financially and emotionally. Think things through and prevent buyer's remorse. And talk with real estate pros to find out the things you should do before you ever set foot in a home.