How do I prepare for buying a home? As we stated before, the first thing you need to do is meet with a mortgage loan officer, to see what loans are available to you, and to see what you will qualify for. It is important to understand that what a lender will approve you for isn’t necessarily what you could manage. It is strongly advisable to do a hypothetical budget first, to find out what kind of payment you are comfortable. Then take this number and increase it by about 20% because of the tax benefits that you will have from owning a home. You can estimate utilities on a home by calling the local utility companies and ask for an average of what the bills were on a particular house for the past 12 months.  Once you have this budget prepared, it is time for a meeting with a mortgage consultant. We strongly suggest a face to face meeting, not one over the phone. Understand that a pre-qualification over the phone is only as good as the information given to the loan officer. Without actually seeing certain documents, the loan officer will not be able to troubleshoot issues that may occur later. We also strongly advise against an internet pre-approval. Usually they are not worth the paper they are written on. Everybody knows of one or two people who tell nightmare stories about their loan process. Most of the time this is due to an unprepared borrower, or a unqualified loan officer. Prepare for the meeting buy gathering the following information: Federal tax returns for the past 3 years, including all W-2’s Last full months pay stubs. If there was a prior job during this year, also supply the last pay stub from this job. Your last 2 months bank statements- all pages- all accounts. This includes mutual funds, stock accounts and retirement plans.  If you have cash at home, do not deposit these funds! Let your loan officer guide you on what to do with it. If you are divorced, a copy of your full divorce decree. If you file bankruptcy in the past 7 years, supply the full bankruptcy petition, not just the discharge papers. If you receive or pay child support or alimony, supply a copy of the court order and a 12 month payment history. If you receive pensions, social security or disability income, supply a copy of the award letter and proof of receipt for the past 2 months. If you presently rent, a 12 month history will be required. If you do not want your landlord to know that you are moving yet, then try to obtain copies of the last 12 checks that you paid.  Once you have gathered all this information, set an appointment with a loan officer and have him go over your financials. Get comfortable with one loan officer and stick with him/her. Remember, every time you go to another lender, a new credit report will be pulled, and your scores can go down.