Get Pre-Qualified

If you bought a home in 2003 and are ready to upgrade to something larger, you might get a huge suprise when it comes down to talking with a lender today. It wasn't too long ago that anyone that walked in the door could get a loan with little to no hassle. Pull up a credit score, get a few documents together, no big deal. And while many people understand and have followed the state of affairs in the housing market on TV, they aren't realizing how this translates to their process of getting a loan in today's finance environment.

The bottom line is, yes, lenders want much more information now than they used to. I'll say it again: much more. The good news is that your lender is on your team and wants you to get that loan just as much as you do. So while they're going to need everything from your last two year's w-2's, two months bank statements, landlord information, letters explaining cash deposits, and a blood sample (ok maybe not a blood sample) be prepared and even willing to give them what they want.

You also will want to talk to a lender BEFORE you start looking at homes. Not only will they guide you to a budget, they will give you good strong advice about how to handle your finances once you are under contract until closing...and it's not always the same advice Suze Orman would give.

Trying to pay off debt before you close? Actually, your lender might caution you otherwise. Some banks would rather see lots of cash in the bank and notice you're paying off monthly expenses towards credit cards than see no debt, but no cash either. Just talk to a trusted lender first.

If you're not sure who to talk to, your realtor can give you the name of someone they have worked with successfully before.

Just make sure you do your homework and get pre-qualified before you go out and fall in love with a home. If you're buying, it's got to get done sooner or later, so approach it with a positive attitude and when your lender says he or she needs something remember, you share a common goal.