The two most important things to do are to choose a Realtor and a Lender. Your Realtor should be there for you, finding potential homes for you, keeping you informed of the entire process, negotiating furiously on your behalf, and answering all of your questions professionally and quickly. Your Lender should be an experienced person with a reputation for honesty, fairness, getting loans closed in time, and, of course, good rates and low fees.

Want a New Car? Need a New Wardrobe? Hold off.
Did you know that every $100 in monthly credit payment can cost you about $10,000 in home eligibility? That $300 a month car payment means that you may qualify for $30,000 less in a home. That doesn't mean you can't buy a new car - just wait until AFTER you close on a home. Then you will already have the mortgage at the higher qualifying amount.

Whatever you do, don't go on a spending spree before your home closes. Your mortgage pre-approval is subject to a final evaluation of your financial situation. You may lose your financing at the last minute if you spend all your cash or make a large purchase on credit even a moment too soon.

When Talking with a Listing Agent, Less is More
The listing agent is the person whose name is on that “For Sale” sign. (S)he represents the seller. By law, the listing agent must inform the seller of any MATERIAL facts - facts that can influence the seller's decision about whether to accept an offer from you and at what price and terms.

For instance, if you tell the listing agent that you are pre-qualified for $250,000 but this is a $200,000 home, the agent knows that you can afford more if you try to negotiate the price down. If you say you work for a major firm that is known to give stock options to employees, then the agent knows you may have access to more funds than you wanted to reveal. In any case, the law specifies that the agent MUST reveal this information to the seller.

This information is not meant to scare you. Feel free to call the listing agent to ask questions about the home and the seller. You may even be able to learn some information that will help your negotiating position. The most important thing is to have a Realtor who is representing YOU. And if your Realtor is not present when you're viewing a home, reveal no personal information about yourself to the listing agent, except to say, “I'm already represented by an agent”.

Never Let the Listing Agent Represent You
When an agent represents both the buyer and the seller it is called DUAL AGENCY. When agents represent only one party, they are, by law, required to negotiate to the best of their ability on behalf of their client. However, the law changes with dual agency. Basically, the agent is required to “do no wrong”. The agent must maintain confidentiality with both clients, but (s)he acts more as a mediator than a negotiator.