The very first step in buying a home is to work with a Lender and find out the price you can afford to pay for a home. Your price or budget will depend on seven factors: 1. Your income 2. The amount of cash you have available for the down payment, closing costs and cash reserves required by the lender 3. Your outstanding debts 4. Your credit history 5. The type of mortgage you select 6. Current interest rates 7. Your willingness to commit to a payment schedule of a certain size A mortgage Lender will analyze your income in relation to your projected cost of the home and outstanding debts and produce a conditional qualification letter that tells you what they can lend you on your home and any conditions that apply. Your Realtor will submit that letter with any offers made to allow the seller to verify your qualifications. Your Realtor can help you find a qualified mortgage Lender and encourage you provide a written application and all material documentation to allow that lender to speak highly of your credentials when the listing agent calls to find out about you.