Get Loan Preapproval. See the loan officer. Your credit files are to be reviewed and the loan officer should state you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a preapproval letter, which shows your borrowing power.   The preapproval letter can be shown to listing brokers when bidding on a home. This information is important to owners. It demonstrates your financial strength and shows that you have the ability to go through with a purchase.   The real issue with real estate financing is to get the loan that's right for you - the mortgage with the lowest cost and best terms.   Preapproval provides a reasoned, careful analysis of what you can afford.   Get Funding! Buyers should have as much information as possible regarding mortgage options and costs, so RealEstateGates.com provides consumers with extensive mortgage information as well as a variety of loan calculators.   In general, the mortgage you choose will likely be determined by at least several key factors: Loans with 5 percent down or less are now widely available -- in fact, loans from major lenders with no money down have appeared in recent years. If you place less than 20 percent down, lenders will want the mortgage guaranteed by an outside third party or a private mortgage insurer (PMI, or private mortgage insurance, is required by lender to protect against any mortgage defaults). The best rates and terms are only available to those with solid credit. To get the best loans, make a point of paying credit cards, installment payments, rent and mortgage bills in full and on time. State-backed first-timer programs often feature smaller downpayments and below-market interest rates. To obtain a loan you must complete a written loan application and provide supporting documentation. Specific documents include recent pay stubs, rental checks and tax returns for the past two or three years if you are self-employed.   Mortgage financing can be obtained from mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks, commercial banks, credit unions, and insurance companies. A growing number of realtors can also arrange financing.     Read other articles from ‘Buying Real Estate’ series   Buying real estate - Preparing to buy Choosing a real estate agent Buying real estate - Finding a home Buying real estate - Managing the offer Buying real estate - Getting insurance Buying real estate - Closing the deal Buying real estate - Settling in