1. Plan ahead

Before you're ready to buy a home, you'll need money for a down and closing costs, and you'll have to qualify for a mortgage loan. So, save up, and establish good credit.

2. Know what you can afford and stick to your budget

Don't set your sights too high and look at you can't afford. You may not be able to afford your dream home right now. Read How Much House Can You Afford? And use our calculator to help you determine your price range.

3. Give yourself time

This is a big decision, and you don't want to overlook anything important. Think carefully about what you need and want in a home. How long will you live there? Is your family growing? Will you be able to sell it when you want to? Do you like the neighborhood? How about the schools? Make sure you're satisfied with all aspects of the home you will live in. And, then, don't be afraid to make a commitment.

4. Make a carefully-considered offer

Don't offer too much. Before you make an offer on the house you want to buy, have your real estate agent prepare a comparative market analysis showing recent sale prices of similar homes in the area. Make sure you include any necessary contingencies (like mortgage financing, inspections, repairs, or sale of your home) in your offer. And don't be afraid to negotiate.

5. Choose your mortgage (and your lender) carefully

The 30-year fixed-rate, while the most common mortgage, is not the only one on the market. And it may not be payment the best for you. Know all your options! And find out what different lenders can offer you. Read What Mortgage Loan is Right for You? And have your lender show you your options on paper.

6. Consult with your lender about paying off bills

Don't assume that doing so would help you qualify for a mortgage. You may need to, but the cash you have might serve you better. Or, partially paying off some debts could help you immensely since debts that will be paid off within 10 months are usually not considered part of your long-term debt load. You might be able to pay down a loan or two so that remaining balances will be repaid within 10 months. Your lender can evaluate your situation and advise you.

7. Don't change jobs

Stable employment history will help you qualify for a loan. A lender will look unfavorably on a cut in pay. And, during the loan process, verification of income from a new job can create delays.

8. Don't move money around

New homes accounts will complicate the loan application process, since a lender has to verify all your sources of funds, and will want to know that you have had that money for several months.

9. Don't increase your debt

Don't make any major purchases, like a car or furniture for the new house. If these purchases increase your debt load, you might be prevented from qualifying for a mortgage loan.

10. Time your move well

If you are selling your previous home, do you need to close on that sale before your purchase closes? If you are renting, make sure your move coincides with the end of your lease.

What will my closing costs be?
These are costs you must pay upon receiving your loan, when you close on your new home and title is transferred. Various fees such as origination and appraisal fees, credit report, attorney fees, title insurance, and inspections are included in your closing costs. Your lender's points are also included in your closing costs. Your lender is required to provide an estimate of the closing costs within a few days after you apply, but you can ask for a general idea of these costs from the start.

What points will I be charged?
A point is equal to 1% of the loan. Points are a portion of the interest on your mortgage that are paid up front, lowering the interest rate. Points are paid at closing, and may be paid by the buyer or by the seller, or split between them. The lender determines how many points are charged, and you'll want to find out as soon as possible what options you might have and how they could benefit you.

What items must be prepaid?
Some housing expenses you will face during your first year in your new home must be paid in advance at closing. Property taxes and insurance are among these. You may also have to prepay some interest on your loan. Find out what these expenses will be.

Can I lock in the quoted interest rates?
Most lenders give borrowers the option of "locking in" the interest rates quoted to them when they apply for their loan. A lock-in guarantees the quoted rate for a set time period. Ask your lender if this option is available and whether it is advisable for you at the time you apply. And you'll want to find out if there is a charge for locking in the rates. Some lenders will also allow you to lock in points, so ask about this as well.

How long will it take to get approved?
Processing and approval times vary from lender to lender. And you'll probably have a deadline for closing on your new house. So, be sure to ask how long approval will take.

Is there a prepayment penalty?
If you ever want to make larger payments on your loan in order to pay it off more quickly and save on interest, you'll want to make sure that you will not be charged for doing so.

We will call you immediately to confirm receipt.

• Four current pay stubs - one more will be needed three weeks prior to closing.
• W2s for the last two years (a signed original IRS from #8821)
• Two years tax returns, if self employed (signed), a year-to-date profit & loss statement and a signed original IRS form #4506.
• Last three months bank statements for all bank accounts (any unusual increase-i.e. any deposits in excess of $1,000 must be explained).
• Gift Funds. If the borrower is receiving gift funds, clearly identify the amount of the gift letter and evidence of receipt of funds and transfer from donor's account.
• Twelve months canceled checks of rent/mortgage payments.
• Full divorce decree, if applicable.
• Purchase and Sales Agreement, if applicable.

An initial Good Faith Estimate of Closing Costs and Truth in Lending Statement will be issued upon receipt of a fully completed mortgage loan application and receipt of the appropriate application fee(s). Program, fees, terms subject to change without notice.