Finding a dream home can be hard enough but being able to afford your dream home can be made easier once you find how to be pre approved for a mortgage. There are several steps that can bring your dream closer to reality. Finding out how much you can afford and what cost and mortgage rates a lender is willing to offer on a mortgage takes a little work, but can make it much easier when house hunting.

Before the lending crisis anyone could get a home loan. And now some of those people have found they could not afford what they had. The days of anybody getting a home loan are over or should be. Today it is good to find out what you can afford and what it will cost to have that home sweet home. Getting your financial and personal information is the first task to undertake. It is good to know where you stand before you begin looking for a mortgage broker. Getting the best deal can at all points during this journey you must look out for yourself. You must judge what the best deal is for you as you shop around for a mortgage.

With some of the foreclosures and deals coming from those who did not have a mortgage they could afford, it can help to move faster once you are pre approved for your mortgage.http://www.ginniemae.gov/3_lender/pre_approval.asp?section=YPTH

Getting your finances together is important as there are several things every lender is going to want to know before they offer you any money. This is so they know you will be able to pay back the mortgage since they can no longer look for the price of the Real Estate to escalate. And remember to ever truly own the house, you want to pay them back. Start a file and have a sheet of paper listing your financial statement.

Items they are going to ask for:

Assets The lenders want to know: what have you got and how much is it worth. You will want to list any stocks or bonds you own. Anything that has a recognizable value including but not limited to your vehicle is looked at.

Debts Before the lenders let you be indebted to them they will want to know who else you owe. Make a current list of all vehicle, personal, and credit card debt you have. They will want to know your monthly payments and payoff schedules.

Income The lenders will not only want to know how much you make, but will want to know who you are employed by and even how long you have been employed. Don’t be surprised if they ask for the address of your employer.

Checking your credit report might be helpful, but the mortgage institutions will do this on their own.

Find if you are eligible for any government home loan programs.

It never hurts to have Uncle Sam on your side. Before you begin to look for a mortgage broker it is wise to see if you qualify for any special rate or backed loans. There are several institutions that lend money or back your loan. Often their backing can affect the money a lender expect you to put on a down payment. http://www.pueblo.gsa.gov/cic_text/housing/best-mortgage/mortb_1.htm

Here are a few to look into:

VA Home Loans: If you are in the military services or served six years active service there is the Veterans Administration loan guarantee program.http://www.homeloans.va.gov/faqelig.htm You can check their website for details: [1]

FHA Loan programs: The Federal Housing Authority offers loan assistance for many that might have a harder time affording a large down payment. http://www.hud.gov/buying/loans.cfm Their website is full of information: [2]

Rural Americans Housing Assistance: The Housing and Community Facilities Programs offers several programs for rural residents. There are limits to the amount of loans available and income requirements. http://portal.hud.gov/portal/page/portal/HUD/topics/buying_a_home

Energy Efficient Mortgages EEM: Federal government recognized as an opportunity to buy or upgrade a home to be more energy efficient. It allows the buyer to put less down or borrow more for energy efficient upgrades. http://www.hud.gov/offices/hsg/sfh/eem/eemhog96.cfm

For those with good credit and available funds for down payment the government programs are not a necessity and are not required to obtain an affordable mortgage.

Once you have your financial information and you have looked into federal assistance or decided you don’t need government help it becomes time to shop for your mortgage.

Your mortgage is a long term investment and all aspects should be looked into before signing your name to it. Just because you are seeking pre approval, don’t forget you are a customer that the lenders are going to make money from. They want your business do not be afraid to make them compete for it.http://www.pueblo.gsa.gov/cic_text/housing/best-mortgage/mortb_1.htm

You can start with getting terms from your bank or credit union, but don’t commit without looking around. The paper is a great place to look for rates, but until you can get all the cost from the lender you won’t be sure. There are mortgage brokers that shop for you, but remember this is your investment and only you can make the final decision on what is the best deal for you.

Once you choose where to start looking for loans you will need to meet to meet with the lenders. When you meet the lender, make sure to take all of your financial information. Ever lender has their own forms to fill out, and sometimes the banker or mortgage broker will fill out the forms for you. Take your time to get the best deal and beware of predatory lenders. http://www.hud.gov/buying/booklet.pdf

Once you have locked in your terms and your loan you can look turn your attention to looking for the home of your dreams.

The content in this page is not a substitute for professional financial advice. Please contact your financial advisor before using the information presented here.