The Process of Buying a Home

So you're thinking of buying a house? Before you run out and start looking at all the houses on the market, think about how many houses are sitting out there with "For Sale" signs on them. Contrary to what many people believe, buying a home is a process not an event.
Step 1 First of all you want to find out- exactly how much of a house are you qualified to buy. Call a mortgage broker, a mortgage company or a bank and ask to speak to a loan officer. Don't be afraid to talk to more than one company. Different companies charge different fees. One piece of advice if you start working with a loan officer and he or she isn't very prompt in answering your phone calls, this is a clue that you might have problems later on down the road in closing .
Make sure you are dealing with a service oriented company. It is stressful enough going through the buying process, you need a company representing you, who is interested in making sure the entire process of getting your mortgage closed is smooth and timely. Your realtor should be able to recommend several loan officers. Most realtors are interested in getting the job done as efficiently as possible. Realtors representing the buyer in most cases only get paid once the transaction is closed. Remember, though, you are the one ultimately responsible for the mortgage, so make sure you understand the terms of the loan before you sign any papers.
To prequalify the officer will ask you several questions over the telephone. Based on the information you give them, they should be able to tell you how much you can spend on a house. Get an idea of how much your monthly payments will be, remember making the mortgage payments is a long term commitment. Look at your lifestyle and make sure the payments will be a comfortable fit your family. Like tight fitting shoes a mortgage payment you can't afford, can become extremely uncomfortable. Draw a line in the sand and stick to your plan.
There are three key benefits to finding out how much home you can afford.
1. You know exactly how much you can afford. You eliminate time looking at homes that are not in your price range.
2. You get financing information and advice. You find out by speaking to a mortgage advisor the best interest rates, your monthly payments and if you have issues with your credit- what steps you have to take to qualify for a mortgage.
3. You can make a stronger offer. You can beat out other buyers and you can negotiate the lowest price and best terms if you are preapproved.

After you are pre-qualified over the phone, the pre-approval is easy.
1. A Home Loan Credit Report is generated by the Credit Bureau.
2. Your employment, bank accounts and rental payments (if applicable) are verified
3. All information is forwarded to the underwriter for approval.

After you are approved for a mortgage, it is very important not to start maxing out your credit cards and taking out credit on new furniture. Whatever you do, don't go out and buy a new car. This advice doesn't apply to the fabulously rich. In most cases, taking out new credit will not do anything to improve your financial situation and in a lot of cases might cause your mortgage loan to fall through.

So before you actively start your home hunting process make sure you have an idea of how much home you can afford. Also, allof the people involved in the purchasing process must be in agreement in terms of how much will be taken out of the monthly budget to pay for your mortgage payment.