If you are starting to look into being a homeowner, then a big "congratulations" is in order. Homeownership means that you've made it to adulthood and that you no longer have to pay an endless amount of rent to a stranger every month. But before you really get the home shopping process going, you should make sure that you qualify for a mortgage. So, what's the process? 

Pre-Approval

Before you even start shopping for homes, you should get pre-approved by a certified home lender. To get preapproved, they are making sure that you have good credit, that you have a job, that you have a consistent income, and that your debt to income ratio is low enough to cover your monthly payment. If you pass all of these requirements, then your lender will send you a pre-approval letter which will help you with the overall home buying process. Then when you go to make an offer on the home of your dreams, you can show them your pre-approval letter which will give them more of an incentive to accept your offer. 

Be Smart With Your Finances

While you are in the home-buying process, you have to be really smart with your money because the bank wants to make sure that you are responsible. For instance, don't open any new credit cards until after you close on your house and it has been recorded with the country. Additionally, make sure that you keep your savings account high and your credit card balances low; the more money you can show that you have at the time of closing, the better off you will be. 

Know Your Limit

Once you are approved for a mortgage loan of a certain amount, that doesn't mean that you have to buy a house that is that price; in fact, it just means that's the maximum amount that you qualify for. And although the bank may say that you can afford that monthly payment every month, take a step back and look at your finances. Will you really be able to afford that amount, or will you be too tight? Will you have to skip out on eating out and going to the movies with friends, or can you make it all work? Once you know your limit, then you can start looking at houses in that price range. 

If you want to learn more about qualifying for a morgtage and the home buying process, contact a lender like Acceptance  Capital Mortgage near you.