When a pre-approval letter is in hand, the first time home buyer is now ready to find a qualified real estate agent. A good agent will interview you and determine your needs and wants in a new home.  Since they deal with home sales on a daily basis, a good real estate agent will provide you with realistic expectations of the home type and area for which you qualify.  Many first time home buyers have a misconception that once they have a pre-approval, they hold all of the bargaining cards when shopping for a home.