Before you proceed too far, you must be sure that you are financially in a position to make the purchase. 

Sound advice can help you get the most house for your money.

• You've spotted the perfect place and need to know whether you can afford it.
• Examine your credit and financial situation.
• What type of mortgage will best fit your needs?
• Show that you are a serious buyer by getting pre-approved.
• Do you have enough money to purchase your dream home?
• Is Your Financial House in Order?

Mortgage lenders will put your credit and finances under the microscope. So before you begin the home buying process, you should review these things for yourself.  You need good credit. For at least one year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.

You may request one FREE copy of your credit report per year.  It is a good idea to monitor your credit report to identify potential inaccuracies.  Your credit score and credit report are significant factors in determining whether a mortgage lender will loan to you or not.  They are the best indication a lender has in determining your likelihood to re-pay your loan.  Click here for Your Credit Report - Helpful Tips for Home Buyers.

Learn about Mortgages:

Once you've reviewed your finances, credit and purchasing power, you should start researching the different types of mortgages. Each type of mortgage has its pros and cons. Finding the one that's right for you will depend on many factors, such as how long you plan to own the home, and the size of you down payment.

Do You Have The Money?

Homes and financing are closely intertwined. Financing is the difference between the purchase price and the down payment, commonly referred to as debt or the mortgage. The good news is that over the years new and innovative loan programs have evolved which allow you to find a loan that fits your needs.  Look to get pre-approved where you will lean about your options.

Get Pre-Approved:

Pre-approval from a mortgage lender will help you in several ways:

• It will reveal how much you can realistically afford.
• It will help you identify credit problems early on in the home buying process.
• It will show sellers you're serious about buying (which can be helpful when there are multiple buyers / offers).
• It's become an almost required step when submitting an offer on a home

Learn more about other details of financing your new home purchase, see section on Keys to Obtaining a Mortgage