Find a Lender First
When I began meeting with real estate agents, they always asked if we had approached a lender. When we met with lenders, their first question was always whether we had a property in mind. This left us totally confused.
So what’s the right plan? 
Potential home-buyers should always meet with a lender before they start
 their home search, this helps you decide which mortgage program is best
 for you. Mortgages are originated either by mortgage brokers or 
traditional banks. Because the industry is so heavily regulated, it 
doesn’t really matter who you choose for your mortgage — the 
qualifications will be largely the same, Jennings says. However, small 
banks are likely to offer fewer mortgage options, while larger lenders 
usually offer more.
If your income and credit qualifications are well above the minimum 
range and your employment history is steady, many lenders will feel 
comfortable providing a pre-qualification letter.
When you’re ready to buy a
 home, you can strengthen your offer with either a pre-qualification or a
 pre-approval letter from your lender. A pre-qualification, where a loan
 officer reviews the applicant to make sure that they meet the minimum 
requirements, is the most common, Jennings says. If your income and 
credit qualifications are well above the minimum range and your 
employment history is steady, many lenders will feel comfortable 
providing a pre-qualification letter. “In the industry it’s known as a 
slam-dunk borrower,” Jennings says.
However, if your 
application is on the cusp of qualifying because of credit or income 
issues, you may choose pre-approval. “The file is actually formally 
approved subject to the borrower finding a home,” Jennings says. “I do 
these on occasion when I don’t feel comfortable signing off on a 
pre-qualification letter.” Although a pre-approval takes longer up 
front, it can actually cut time between your offer being accepted and 
closing, because much of the review is already done.