One of the most important things you will do is purchase a home and being knowledgeable about your finances is a critical piece of this transaction.
Calculate your budget. You should be comfortable with your monthly payment. Remember, that payment is made up of principal, interest, taxes and could include homeowners insurance and PMI (private mortage insurance). You will need to contact a mortgage lender to help you determine this number. So the next step is to research lenders. This research should include looking for the best rates, reasonable closing costs and the types of mortage products they offer. Keep in mind that rates can change daily. So when you start your home search, periodically check the current market rates as it may mean you will have to adjust your price range.
Now you can have the mortgage professional pre-qualify you for a mortgage loan. Once armed with this information you can begin your home search. Having been pre-qualified for a mortgage makes it easier for you to make an informed decision when you are ready to buy.