1) Get the names of a small number of lendes and mortgage brokers. This may take some time, so it is worth starting early and is just as important as the real estate agent you pick.

2) Understand how much you can afford to borrow and which houses are in your price range.
This is the perfect time to begin to work on two tasks at the same time. First, meet with the lenders or mortgage brokers you picked in step 1. This will allow you to get different estimates on how much you can afford to borrow and buy, and also to get acquainted with the lenders and brokers to see which ones have a style and personality that you like.

3) Get advice on different home loans and rates and get pre-qualified or pre-approved
As you work with the different lenders, ask them about the types of loans and rates available and what the implications are to you. Preapproval gives the seller more confidence in you as a buyer, and gives you more confidence when shopping for a home. There is nothing more dissappointing than finding the perfect home, and then finding out you cannot afford it.

4) Find a Home
Begin working with your Real Estate professional to begin you home search.

5) Get a good faith estimate from your lenders and mortgage brokers
This is a key step that could save you several hundred dollars on your loan.  Make sure to compare your good faith estimates carefully. As of Jan 1, 2010, the Good Faith Estimate is a commitment to costs. In the past, estimates were just that, estimates, and most lenders were less than completely honest about them. If you have questions about how to read them, have them explain them in detail.

6) Pick a lender or mortgage broker.  Once you compare the Good Faith Estimates from the different lenders, it’s time to pick one.  Be sure to compare the total costs of the loan, but also consider which lender has the best track record in terms of following up with you, and has the right fit for you and your situation.

7) Complete the paperwork and Documentation
Here, there will be a long list of docuements to complete and paperwork to assemble.  Plan on several hours of work here.  Here you will need to closely with your lender/broker to address any follow up questions, and decide on and lock the final rate.

8)   Sign all paperwork  and finalize the Deal
Your loan advisor will work with you to schedule a signing prior to the closing date.  The closing date will be specified on the purchase agreement. Closing is the last step and is done at an title company that performs escrow.   At the closing you will sign all mortgage documents and take possession of your new home.  If you are refinancing, you will get a lower interest rate, cash out, or both!