Step 3 - Get Pre-Approved for a Loan.
Contact your bank, or preferably, a mortgage broker who can "shop rates" to ensure you the best rate for your situation. Apply for a "Loan Pre-Approval", which entails a process of complete verification of your loan application, employment, assets, etc. This step is critical to know exactly how much home you can afford. Furthermore, having a "Loan Pre-Approval" in hand will surely strengthen your offer on any property!

(Please note that a "Loan Pre-Qualification" is usually nothing more than a letter from a lender indicating what loan you would qualify for based upon a person's financial claims. It is un-verified and usually is not worth the paper it is printed on!)