Also, make sure to include all the income you have. If you have any equity in any stocks or other financial accounts, make sure to mention that to the broker as well.

The more money you can put down on the loan, the more likely it is that you can get approved. FHA loans usually only require 3-5% down. They are also usually open to working with people with credit problems.

· Looking. Of course, it is important to look around. But if you find out what you can afford before you begin looking, it makes things a lot easier. Know how much house you can pay for, and look only at what you can afford.

· Negotiating a price. Just because a house is listed at a certain price doesn't mean that you can't negotiate. In real estate, negotiating is part of the home buying process. Your agent can help you with this. You should negotiate based on the current local real estate market, and offer at lower than the asking price. 

· Making an offer. You should make your offer in writing, and you should include contingencies. The most common contingency is that the home pass a professional inspection. An offer becomes a legal contract, so if the seller accepts, and you don't have a home inspection contingency, you could be stuck with major repairs.

· Professional home inspection. This should be done as part of the home buying process. You want to make sure that everything is in order. Things like plumbing and electrical can't be seen as you are walking through the house. A qualified and professional home inspector can uncover defects that are not immediately visible.

· Home insurance. You will need to get home insurance before the sale of the house is completed. This essential part of the home buying process ensures that your biggest asset, and a major risk by the bank, is covered, and that losses can be recovered. Note that most home insurance policies do not cover floods, and many do not cover fire. Carefully check to make sure you know what you are getting.

· Mortgage insurance. Private mortgage insurance may be required if you did not put a 20% down payment on your home. This is insurance that the lender might require in order to help cover the loss in case of a default.

· Title insurance. This is insurance designed to protect in the instance of problems with the title. If it is not clean, or if some public records have not been properly searched, you could lose your home because of a title problem. Title insurance can be a protective part of the home buying process.

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The average rate of interest on mortgage loans continues to fall and has been under 5 percent for almost all of this past year, with this recent round of rate cuts seen as the lowest for borrowers in years. The reason, many borrowers today have bad or at least less than perfect credit scores. Still a borrower with less then perfect credit an jump through a few hoops and get a fairly decen rate on a loan.