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1. Save for a Down Payment – this will impact on how much you can afford to borrow for a home.  There are also several home buyer assistance programs available like low-interest loans, forgivable loans, or seller concessions.
2. Current Debts – in addition to the down payment you have available, consider reducing your current recurring debt. The total monthly payment on your existing debt plus new payments for your mortgage may not be allowed to exceed a certain amount (example 41%) reducing your current debt allows you to borrow more on your mortgage.
3. Loan Types for Smaller Down Payment Amounts – If you are not working with 20% down payment amount consider a  FHA loan which offers 3.5% down payment.  Smaller down payments require  mortgage insurance.
4. Compare Mortgage Lenders – Mortgage quotes vary based on down payment, your income, credit history and debt.  You will notice a lot of market volatility when shopping for a mortgage.  This process can be stressful but in the end it will be worth the extra effort. 
5. Pre-Qualification Letter – Once you know what type of loan is best for you, how much down payment you have it’s time to get pre-qualified for the loan.  Having a solid pre-qualification letter when you offer is being presented can give you an advantage over other offers.

Jasna Hoyt – Hoyt Real Estate