1. I know this sounds self-serving, but the first thing to do is find a Realtor. Would you want a heart surgeon that have never operated do your heart surgery? Then don’t use your daughter’s best friend’s mother or the lady at church that is new in the business because they need the money. Your home is your most important asset. Why not make sure you get the right home, at a good price and with the least amount of stress.
2. Choose your lender. One of your Realtor’s jobs is to be familiar with what lenders offer what programs. Just like all houses won’t be the best fit for you, neither will all loans. Today (9/1/09) there are still 100% loans available, there are lenders who can work with weak credit and there are lenders that buy the market for those that can put 20%. These are just a few of the loan programs available today. There are many others. If you have a house to sell so you can buy, there is a terrific loan program for you.
I always like to meet with my people before they go see a lender. That way, I can figure out what loan program is the best for them. Also, I can give them an idea of what they can qualify for and then what they are comfortable with. Those can be very different depending on the timing and situation. Then I give them a list of lenders and why some are a better fit than others.
3. The first lender you see will be able to give you a letter of pre-approval. You will need that when you find the right home. Plus they will let you know what you qualify for. Once you have gotten an accepted offer on a home, you can check other places if you wish.
4. Figure out where you are comfortable with your monthly payments. This may change when you start looking.
Now you are ready to start looking for that right home.