This is somehow the concept of :
Look before you leap
and can be said as update before install
.
Now note that In linux world update
and upgrade
are two different terms. To get a short and sweet knowledge refer to these posts at AskUbuntu, Unix StackEx and It's FOSS.
Now the difference between the two can be figured out by man apt-get :
update
Used to re-synchronize the package index files from their sources.
The indexes of available packages are fetched from the location(s)
specified in /etc/apt/sources.list(5).
An update should always be performed before an upgrade or dist-upgrade.
upgrade
Used to install the newest versions of all packages currently installed on the
system from the sources enumerated in /etc/apt/sources.list(5).
Packages currently installed with new versions available are retrieved and
upgraded; under no circumstances are currently installed packages removed,
nor are packages that are not already installed retrieved and installed.
New versions of currently installed packages that cannot be upgraded without
changing the install status of another package will be left at their current
version.
An update must be performed first so that apt-get knows that new versions
of packages are available.
I suggest you read again the last lines of both commands that explicitly answers your question that is
You get the latest version of a package to install
Also, See this image below ( Created by me ) to get a better view on it.

Feel free to add-in more details.
apt update
gets the latest software availability tables.