One of the first steps in home buying is to visit a lender and find out how much you can afford to spend on a home. This will save you the agony of falling in love with a house that is out of your price range or looking for less of a house than you could comfortably afford. A phone call or short visit to a lender will help determine the range of prices of the homes you need to shop for. This process is called "Pre-qualifying". There are no costs involved in pre-qualifying and almost any lender will be more than happy to assist you with the process. A buyer who is "Pre-qualified" makes a stronger buyer at the time of an offer. The following is information that a lender will require when you speak to them:

• W-2's for the most recent year & current pay stubs
• Self employed borrowers - two most recent years of signed federal tax returns
• 2 years residence history
• Provide two most recent months bank, investment and/or stock statements
• Monthly debt information - including names, addresses, account numbers, monthly payment and balances on all open installment and revolving accounts
• Divorce decree/bankruptcy papers - if applicable