Wouldnt it be nice if it were as easy as 1,2,3: pick your home, get a home loan, move in. But, as with so many decisions in life, one step is contingent upon the next. Before you can get the mortgage, you have to know how much you need. Before you know how much you need, you need to know how much the house you have decided to buy costs. And even before you can make this decision, you have to know what size home loan you can afford.

We can see, then, that shopping for your home should not be the first step in the process-first you have to know how much house you can afford. For this reason, it is wise to consult with a mortgage broker to get this information ahead of time.

The first thing a mortgage lender will do is perform an analysis to see how much you can afford to pay based on your income, fixed expenses and assets.

It is wise to take this critical step for a number of reasons. You will have a clear idea of how much you can afford to pay for your house, and you may receive a mortgage commitment, a very important tool when home shopping. Both sellers and real estate agents like to work with a potential buyer who can actually make an immediate offer because he has the funding in hand.

These will prove to be important factors in your home search-the knowledge how much you can pay, and having the funds to pay. Outside of the cost of a home, the most important considerations people care about in a home is the location and the school system (important whether or not you have children, since home values are better in areas with good systems.) You may have to consider a smaller home in a preferred area to remain within your budget. Or, you may pick the larger home with a longer commute.

Homeowners then must consider the more physical attributes: the home style and desired amenities like a fireplace or a pool. Often what is important for one family is meaningless for another.

At this point, you should be ready to get in touch with a real estate agent and start shopping, since you have the most important information: -What you can afford to pay

-Your desired location

-Your preferred style

-Added features that matter to you Happy house shopping!