The initial step in the home buying process is to get pre qualified for a mortgage. Getting pre-qualified for a mortgage is not the same thing as getting a mortgage, or getting pre-approved for a mortgage.

The pre-approval process is a (usually) no cost way to find out how much of a loan a lender will make to you, based on stated income and debt figures which you provide. This can be very helpful to find out if the amount of loan you could obtain would cover the type of home you want to buy, in the area you want to live. A pre qualify is also a useful tool to have when you begin shopping for homes because it lets a seller know that you are most likely able to purchase the home.

Once you have a pre approval in hand, you can begin looking for homes within the price range you are able to purchase and more importantly that you are comfortable purchasing. If you find a home you like, your agent can submit an offer, along with the pre approval letter to the seller and their agent.

Now, once you have committed to purchasing a home, the lending process will kick into full gear. At this point the lender will ask for usually substantial documentation supporting the figures you provided when pre qualifying. If you keep good records and have fairly easy access to your financial documents, this process can be made a lot simpler.