“Pre-approval” which qualifies you by checking your income, credit and other financial data, is recommended so that wasted time and disappointment is avoided.  The pre-approval will indicate the price of home you are qualified to buy.  Also, a lot of the initial legwork is done in advance and you’ll be better prepared once you find the home you wish to purchase.

1. Determine How Much You Can Afford - You’ve made the decision to look for a new home but before you start shopping it is important you know what you can afford.  Based on your monthly income and debts, your mortgage professional can determine this for you.

2. Start Looking For a House - this is the fun part!  You know how much young can roughly afford, now go do some serious shopping.  This process usually takes a while, so in the meantime, you can proceed to the next step.

3. Find a Lender - there are many lenders, many types of mortgages and just as many different terms to choose from.  You might start by talking to a mortgage broker and/or your own bank.  There are advantages to both and you need to be within your own comfort zone.

4. Order and Verify Your Credit Reports - Not all credit reports are accurate so you should order one from each of the major credit bureaus and insure they are accurate.  It could mean the difference between being approved or denied.

5. Organize the Necessary Paperwork - There are a number of important documents that your lender will require.  Jump start the process by organizing them before going to your lender and remember keep a copy of everything you hand over.  Each lender will have different requirements but most will require proof of income, documentation of any additional income, investment records, debt/creditor records and information to obtain a credit history.

6. Discuss Which Type of Mortgage is Best For You - With so many options things can get complicated.  A good mortgage specialist will discuss all alternatives available to you and help you determine which one best suits your needs.

7. Get Pre-Approved - There is a big difference between being pre-qualified and pre-approved.  With a pre-approval you will receive a letter stating that you have been pre-approved for a specified amount.  It is virtually the same as pre-qualification, but it can expedite the approval process.

8. Lock In Your Rate - You don’t need any surprises such as rate hikes the week before closing...make sure your mortgage rate is locked in through to the closing date, leaving a little extra time for delays.  Your mortgage specialist should be able to assist you.

9. Closing - You’re almost there; you are ready for the big move.  Be sure to allow for additional closing costs.  Request an estimate from your builder, lender and lawyer to avoid last minute surprises.