Check your credit
Your prospective lenders will be doing this, so it’s a good idea to look at your own credit report several months before applying for a mortgage. Fix any errors and put off large purchases to ensure your credit score is as high as possible.
Determine what you can afford to borrow
Determine your annual income, your current level of debt and the fixed costs of a new home, including property taxes and insurance. Consider the down payment you’ve saved and determine the size of the loan you can comfortably afford.
Determine what type of mortgage is right for you
Consider your individual financial goals, how long you plan to be in the home and your comfort level with risk. Look at the variety of mortgages available (including fixed rate versus adjustable rate) and determine the one that’s right for you.
Pre-qualify for a mortgage
You should get pre-qualified mortgage from your banker
Compare the offerings
When comparing your offers, don’t simply look at the interest rate -- make sure you understand exactly what up-front and ongoing fees you’ll be charged.
Get pre-approved
Getting pre-approved can give you negotiating leverage when shopping for a home. Supply all the necessary documentation and have your income, assets and credit information verified and have your loan approved, subject to an appraisal of the property and other conditions.
Lock in rate and points
Determine whether you want to lock in the interest rate and points, the length of the guarantee, and the fee for this lock-in.
