I believe that it is vital that we help buyers find a responsible mortgage lender with a mortgage product that fits their wants and needs, prior to looking for a home. No, we are not mortgage experts, however we can make sure they they get off on the right foot. Here's how.

1. First, ask them to put together a realistic budget. Both yearly and monthly. What are the expenses they have today? For utilities, car payments, student loans, credit cards, savings etc? Ask them to put down everything that they spend or are anticipating to spend each month and throughout the coming year.
2. Have them look at how much cash they have readily available for a down payment and for closing costs? How much extra cash might they have for moving expenses, for the expenses that a new home or property may cost (interior painting, new drapes, carpet cleaning, new appliances etc)
3. What are they currently paying for a monthly house payment or rental payment? Is it comfortable? What can they realistically budget for a house payment and still be able to pay their other bills, including the different house costs that they will have for the new property (utility costs etc)
4. OK. Now they are ready to start shopping. Give them a generic mortgage application and ask them to fill it out in preparation for their visits; ask them to make a copy for each lender. Have them visit no less than three companies which offer mortgages in your area. Make sure that if they visit an Internet lender, that they also visit at least 2 “brick and motor” lenders in your area!
5. Have them ask these questions and have them get whatever they are told in writing! a) What types of loans are available? b) Considering their monthly income and monthly debts, what is the anticipated monthly payment that they can afford per the lender’s criteria under the various loan types for which they are qualified? What does your monthly payment include (principle, interest, taxes and mortgage insurance)? c) How long does the entire process take from application through closing? d) Do these loans have an adjustable rate or a fixed rate? If adjustable, how much can they adjust over what period of time? Can the adjustable rate be changed to a fixed rate; if so when and how and what will it cost? Make sure they obtain a “Good Faith Estimate” on each of the loans for which the lender says they are qualified!
6. Have them go back home and look over the information that they have been given. Look at the monthly payments, the cash required for down payments, and closing costs and compare that to the budget they put together earlier.
7. Working with you, make sure that they understand the current market conditions and who is typically paying for which closing costs; as well as the entire process from viewing properties to making an offer to and through closing.

We are the experts in real estate. Buyers are tyring to find their way through this crazy market. Be there to help them and they will be clients for life.