First you need to fill out and submit your pre-qualified application to the bank or loan company for which you intend to apply. Oftentimes, going with the bank you already deal with will be your best bet, as they'll have some records of your finances already. However, you may need to look around to find the best deal that's out there. Talk to several lenders to compare fees and interest rates. Don't make a rash decision by accepting the first offer that comes your way.



You want to avoid signing up for a loan that seems too good to be true. You should be wary of a lender if he offers you a mortgage without asking you for proof of your income. Such loans tend to come with large interest rates. In fact, it is this kind of lending that has led to the recent surge of home foreclosures.

When the teaser interest rates adjust a year or two down the road, loan payments skyrocket, and the homeowner struggles to make ends meet.

The bank's interest is to get money from you month after month - which is actually your mortgage loan repayment. They will calculate your eligibility for a mortgage based on the most you can afford to spend on your monthly mortgage payment. The lender will need to see evidence of your employment and income. Please ensure that you avoid anything that will put at risk your eligibility to get the maximum possible mortgage. Here are a few tips on how to accomplish that:

At all costs, hang on to your current job. When getting a mortgage, a spotty employment record works against you. Lending institutions need to know your income is stable, and in general, at least a year at one job is what it takes to assure them you have good financial footing. Even something small like a job transfer can put your stability in jeopardy, so be very careful when buying a home.

Also, be sure to maintain good credit. Eliminate as much of your outstanding debt as you can, and be careful to make all your payments on a timely basis. A good way to make sure that these payments are made on time is to set up automatic payments for your standard expenses. This way you don't have to worry about remembering which bills still need to be taken care of. It is imperative that you diligently track your personal debt by obtaining your credit reports, checking them for accuracy and keeping them for future reference.