I am a first time home buyer and wonder if I should approach a mortage broker or bank now to inquire on my eligibility for a loan or wait until I have a down payment?

up to you really on when to inquire, lenders and banks are willing to help at all stages of home buying. Minimum down is 3.5% with an FHA loan. You can borrower against a 401k or receive family gift funds for that 3.5% if you want. Closing costs and prepaids would be in addition to that 3.5% but you can ask the seller to cover those for you as a part of your purchase contract offer - most Realtors are familiar with how to word that. Also, you don’t want to spend your last penny at the closing table.. you should have some savings beyond that for normal house incidentals - moving/window covering/any painting or repairs you want to do - the new big screen TV etc.. one note - that 8k tax credit is not avail unless you closing prior to Dec 1st - it might get extended beyond that but it’s not a for sure thing yet...

In today's conservative credit market, the best rates are awarded to consumers with the best credit rating, which is typically a score greater than 740. You should have a sense of your credit rating before beginning your discussions, and you can get a free annual credit report from the 3 reporting agencies at www.annualcreditreport.com. Other factors such as down payment amount will be important but credit rating is one of the biggest factors.

Fred Kauber, ENTITLE DIRECT

I would suggest starting now. You have time to meet different lenders and decide who you can trust. It is a good time to judge who is looking out for your interests, and who is just interested in a quick closing. There may be city or state programs that would be helpful for you. I only lend on Colorado properties, so I can’t help you in Oregon. After you find a good lender, they can help you find a good buyer’s agent. This is the time to be putting together your team, so that when the time comes to buy, you already have a good team of trusted advisors. Putting together the right team of advisors can save you thousands when you do buy.