Once you know you are interested in becoming a homeowner and want to connect with a realtor to 'shop around' you will need to speak to your bank representative or mortgage broker. You need to find out how much you can afford. A bank representative, either a financial advisor, a bank mortgage advisor, or personal banker can offer you only the products that their institution has. This can be perfectly fine for a home purchaser if you like the product and rate that is offered. A mortgage broker is someone who will go to a number of lenders (banks and trust companies) with your request to see where the product you want is and at the same time offering you a good rate. More and more people are looking for more options, such as cash back, borrowed down payment, lower penalties if they need out fast, etc. The mortgage broker is paid a commission and the bank representative is usually paid a salary so either case there is no cost to you for their services unless otherwise stated.

No matter who you decide to work with, the broker or representative will firstly ask you some questions in this initial meeting, They are gathering information to see how much of a house you can afford. This is called a pre-approval. Although it is called a pre-approval, this is not an approval more of a pre-qualifier. The lender will not officially approve a mortgage until you have made an offer to purchase on a home. Someone is pre-approved for a dollar range ($200,000-$300,000 home price) of what they can afford based on verbal income and monthly debt obligations (i.e car loan is $400 per month).

Once you know your price range, you will connect with a local realtor to begin house shopping. If you find a home that you like, you have them help you prepare an offer to purchase and once accepted by the seller you will bring the offer to your bank or mortgage broker. At that time they will begin a more formal application for a mortgage approval. During the negotiations with the realtor please do not waive financing conditions. Waiving these conditions can cause major problems in the future. You are guaranteeing them you will buy the house before you even know if you are approved for the mortgage. It can be at least a week for a formal mortgage approval.

When you have found a house that you like and have an accepted offer in hand, the mortgage broker will then proceed for an actual approval. They will need to confirm income, down payment, credit score, etc. This will lead to an actual formal approval. At the time of this pre-approval you should have the funds already in your savings for the down payment. The down payment must be in an investment or bank account for a minimum 90 days. You also may be the lucky few to receive a gifted down payment from a family member. In this case, they can hold on to the funds until closer to the closing date, they do not need to move the funds to your account 90 days prior to closing.

Another person you need to get in touch with is a real estate lawyer. The mortgage broker might need a name and contact information of a real estate lawyer during the application process. Once the mortgage is approved and set to fund, the lender will send the mortgage documents to the lawyer for their review and your signature.

Other people you may need to connect with are home inspectors, appraisers, home insurance brokers. Ask friends and family who they have dealt with in the past or your mortgage broker and real estate agent might have contacts to share with you.