Get Pre-Qualified for a Loan (step 1)
The first step towards buying a home is to get pre-qualified by a lender to determine how much you can afford to spend on a home. In some cases you can afford more home than you need and a good lender will encourage you to be conservative and not stretch your budget to the point of adding stress to your life. The lender or mortgage broker will want to discuss your credit history, income and available cash to determine the price range that best fits your budget, and then show you the appropriate loan. The lender should also willing to discuss closing costs, interest rates and what you should expect to encounter as you move forward in the loan process. If you are not comfortable with the lender or do not feel they have your best interests in mind then you should look around or ask for referrals of lenders from friends. You want to have confidence that your lender is working for you and will get you the best deal possible.
Now that you have an idea of what it takes to get a loan and how much you can afford it makes the process of finding a home much easier. You can zero in on neighborhoods that fit your budget as opposed to spending months looking at homes that ultimately you cannot afford or buying a home that you may struggle to make the monthly mortgage.
View step 2 of the home buying process: Getting Pre Approved