1. Most sellers will not consider an offer until you have shown a pre-approval/pre-qualification letter from your lender or your proof of funds from your banker or money manager. Any lender will require all financial statements from the past 2-3 years (but heck, this ultimately protects you from what happened in 2008) and will be focused on your credit and Debt-To-Income ratio.
  2. Mortgage Broker: A mortgage broker has access to financing from a large pool of investors and are able to compare different interest rates, points, and terms to find you the best deal.
  3. Mortgage Banker: Think big banks, Chase and Bank of America. These loans are made under the banks umbrella of investments. They have gotten a bad reputation for their dis-jointed nature. I have seen clients tossed around to different employees all of the nation, leaving the buyer with a feeling of “who’s on first”. If you have a strong relationship with your personal banker, I would suggest speaking to them.
  4. Here are some links with helpful information on grant/government funded home buyer assistance programs, ex: Galveston’s First Time Home Buyer , Texas Hero program (to help teachers, first responders, etc with downpayment assistance), and FHA (Federally funded through the Department of Housing and Urban Development). Ask your lender if you qualify.