Now that the homebuyer credit has been extended buyers are once again starting to enter the market and don't really know where to start. Although once the decision to buy is made the buyer is eager to start looking at houses the first move he should make is to contact a mortgage company and get pre-approved. If the mortgage broker he is dealing with does not ask for financial information or proof of employment that buyer should go to another broker. You need a knowledgeable mortgage person who you have confidence in to tell you what you actually qualifiy for, how much of a down payment you need and what other costs you can expect from a purchase. Let this broker know how much you can comfortably pay for housing each month. The payment on the mortgage you qualify for and the amount that gives you the monthly mortgage,tax and insurance payment you are comfortable with can be vastly different and you really should not allow yourself to become house-poor! When taking to your mortgage rep be sure to ask if he has any special programs you qualify for sometimes certain areas, professions and social standings qualify people for lower interest rates or down payment assistance.