You need to choose a mortgage lender carefully.  Look for financial stability and a reputation for customer satisfaction.  Be sure to choose a company that gives helpful advice and that makes you fell comfortable. A mortgage lender that has the authority to approve and process your loan locally is preferable, since it will be easier for you to monitor the status of your application and ask questions.  Plus, it s beneficial when the mortgage lender knows home values and conditions in the local area along with the appropriate closing fees, which vary from state to state and county to county.

The second step is to choose a loan program.  There are several different loan options available today from an interest only ARM to a 30 year fixed.

How do you figure out which program is best for you?

You need to figure out your goals and stick to them.  Is this a starter home that you plan to sell in two years or is this the home you are going to spend the rest of your life in?  After you decide how long you are going to live in your home a mortgage lender will be able to review loan programs that fit your needs.

The third step is to figure out how much you can afford.  Just because you get approved for a million dollars doesn't mean you can afford a million dollar home.

How much home can you afford?

When figuring out how much you can afford on top of the mortgage you also need to add in property taxes and homeowners insurance, along with any HOA fees if the home is located in a community with an association fee.