Before applying for a mortgage - one of the first things you should do, before you even begin looking at homes is get a grip on your credit situation. The state of your credit will ultimately determine how much you will pay for your home. The better your credit, the less interest you will have to pay over the course of your loan. Also realize that while many lenders will take a risk on those with less than stellar credit, they still have certain standards that they must maintain.

Before you begin the home buying process, order a copy of your credit report from all the major reporting agencies. Go over your report with a fine-toothed comb and check for any errors or anything that might not be one hundred percent accurate. If you find discrepancies, be sure to take the appropriate steps to report the errors. Also be on guard for instances of possible identity theft. Identity theft is a growing crime and can have a profound impact on your ability to receive credit as well as the interest rates that are available to you, which will also impact you throughout your home buying process.

Once you have your credit situation well in hand and have a pretty good idea of what the major reporting agencies have to say about your credit worthiness, you can begin with the nuts and bolts of the home buying process. One of the first things you should do at this point is start checking around for loan pre-approval. Be aware that the interest rate is the one thing that will most profoundly impact how much you will ultimately pay for your home. The lower the interest rate the better. Don't get sucked in by offers for free vacations, toasters, or luggage, go with the lowest interest rates and buy those things for yourself with your savings.