Before you start looking for a home, get pre-qualified for a loan. Banks, credit unions and mortgage bankers make home loans; mortgage brokers process them. The lenders will take an application, process the loan documents, and see the loan through to the funding stage.

If you have marginal or bad credit, consult your lender. You may be able to qualify for a loan depending on how long ago and what reason(s) caused the bad credit. A lender should be able to advise you on whether your credit history will prevent you from qualifying for a home loan.

You will need a down payment. Down payment requirements vary depending on the type of loan. Many down payment assistance programs exist. These programs may loan or grant you the funds necessary for the down payment. Consult with a lender about programs available in your area.

You will need funds for closing costs Closing costs are charges for services related to the closing of your real estate transaction. They inc

Beware of Scam Artists Foreclosure scam artists often target people in financial distress. They may try to talk you into giving up the deed to your house, allegedly to clean up your credit, and then rent the house back to you until you are back on your feet. You can see a dramatization of this type of fraud at youtube.com/user/AvoidFraud.

In general, be suspicious:

• Of anyone who wants the deed to your house for any reason, whether its to clean up your credit or obtain "special" financing from an investor.
• Who offers to rent your house back to you until you can get back on your feet.
• Lenders who encourage you to borrow more than you need or more than the value of your home.
• Terms that change at the last minute or offer next-day approval based on prepayments or up-front fees.
• Of forms you do not understand or that contain blank spaces "to be filled in later."
• Beware of phony credit counseling agencies charging high fees for financial counse

Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them?

• Don't ignore the letters from your lender
• Contact your lender immediately
• Contact a HUD-approved housing counseling agency
• Toll FREE (800) 569-4287
• TTY (800) 877-8339

If you are unable to make your mortgage payment:

1. Don't ignore the problem.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem.
Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender.
The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may