What an exciting time!  You have decided that you are ready to buy your first home.  But have you figured out what you want and what you can afford?  You haven’t?  Oohh.. it would be a good idea to do this before you contact your realtor and get looking.  It will save you both a headache and time in the process. 

One of the first things you should do is visit your lender – whether it is a bank or a mortgage broker – and determine what you can afford.  This is not what you are spending – but how much money they are willing to lend you for your mortgage.  You will need to take a paystub or tax forms with you as proof of income.  Be prepared to answer questions about any debt that you may have such as loans as well as credit cards that you use.   They will likely need to know how much money you have for the down payment.  It may take a week or longer to get an answer as to how much you qualify for, so make sure you ask how long until they give you an answer.

Another step is to determine what you want in your home.  There are a variety of items to consider here – what type of home do you want, what features do you want it to have, what do you not want?  You can be as specific or as general as you want, but the more that you can tell the realtor in regards to likes and dislikes, the more success you will have in finding that perfect home.