Have you spoken with a mortgage lender yet? This is probably one of the first questions a real estate agent will ask you when you first meet. And they should. It’s actually one of the most important topics to understand about buying a house. Many home buyers have sat down at the kitchen table and pulled out the calculator and decided they can afford a house. This is a good start, but the next step should be a professional lender- even before you start to look for a house. Here’s why. What is your credit score? Lenders charge interest on the money they loan you. That’s how they make their money. The amount they charge you is based on your credit score. The higher your credit score, the lower the interest rate will be on your loan. The difference between a high credit score and a low credit score could be as high as several hundred dollars every month. Let’s assume you want to take out a 30 year mortgage on a house you like. If you had to pay an extra $150 a month because of a low credit score, you would have to pay an additional $54,000 over the life of the loan. ($150 a month x 360 months = $54,000). By speaking to a lender before you start to look at homes, he or she can tell you if this might affect you. If you do have an issue with your credit, this is the time to fix it. You don’t want to be looking at homes for several months and then find out you can not afford the house you like. And don’t forget about identity theft. Check your credit before you start your house search. As for which lender to use, that’s up to you. You can use your own bank, a credit union if you belong to one, or a licensed mortgage broker.