You can avoid some disappointing surprises as you house hunt, if you figure out what kind of house you’ll qualify for before you shop around. The best way to absolutely guarantee your price range, is to be pre-approved for a certain loan amount. It’s similar to actually getting a loan for a home. You’ll need to show a loan officer your last two year’s tax returns, including W-2 forms. You’ll need recent paycheck stubs and bank statements. If you’re in a profit sharing plan, bring that account information. Have handy the account numbers of your other debt sources, like credit cards and car loans. And the loan officer will need your landlord’s phone number to verify you’ve paid rent on time. You’ll spend about 65 dollars for a credit report. 

But you would eventually pay for this report, anyway. A less time-consuming process is pre-qualification. It’s a bit less reliable than pre-approval because your financial background is not as thoroughly investigated. Whether you pre-qualify or are pre-approved for a loan amount, you will be a stronger buyer than one who’s looking for a home with no idea what he can afford. Plus you’ll avoid getting your heart set on a home outside your price range