Top-7 Steps to Getting a Mortgage, Post Recession

Here is my list of the top-seven steps to securing a mortgage, post recession:

1: Do your homework: We would hope that the recent economic events and wave of foreclosures would inspire consumers to learn as much as they can about mortgages before signing off on a 30-year loan.

Sadly, this is not the case. Nearly half of prospective home buyers don’t understand essential mortgage information, according to a recent mortgage survey  by Zillow.com. If this means you, make sure you take their Mortgage IQ test. Buying a home is serious business that requires as least as much attention as shoe shopping or playing Xbox.

2: Figure out how much home you can afford: The general rule is one should spend approximately one third of their income, minus expenses, towards a home. So if after expenses you are looking at $6,000, then you can afford, give or take, a $2000 mortgage.

Lenders use a very detailed version of this equation to qualify you for a loan. To take a peek at how much house you can afford, check out Bankrate.com's home affordability calculator.

3: Get Your Credit Straight: Besides your income, your FICO credit score will have the most impact on a lender's view of your "credit-worthiness." It's a three-digit number between 300 and 850. The higher the number the better. Didn't pay that cable bill two years ago? Owe AT&T some money? Now is the time to clean all of that up. Negative marks, otherwise know as "dings" remain on your credit report for up to seven years.

4: Get Pre-approved: In today's market, shopping for a home without a pre-approval from a bank or mortgage brokerage is like shopping online with no credit card. You are not shopping, you are "Just looking." No seller is going to take an offer serious without a letter from the party financing the purchase. If you happen to have big bucks and are making an all cash purchase, proof of funds, bank statements and line of credit printouts are still required.

5: Shop around: One huge mistake borrowers make when getting a mortgage is going to their local bank. Just because you have been banking there since college doesn't necessarily make them your best mortgage option. Banks are usually the most conservative when it comes to mortgages. A great online tool is Lendingtree.com. After you complete their application, they shop your loan to hundreds of lenders nationwide to see who can get you the best deal.

(Recommendations):

• Big Bank-- Wells Fargo: They close the highest percentage of deals of any big bank in Brooklyn
• Mortgage Brokerage- Manhattan Mortgage: With relationships with over 50 lenders and a courteous team of financing professionals very familiar with our market. They have what it takes to get you to the closing table with the best rate.

6: Negotiate fees:  According to USNEWS.com's 5 most common mistakes "..lender fees are negotiable and can vary by lender. Borrowers can save money by reaching out to several lenders and comparing rates and fees." Though it may seem like the lender is giving you a hard time, be clear, they make money when a loan is executed. They need you as much as you need them. Watch out for junk fees, such as a lender charging you $200 for a credit report that costs them $50.

7: Look beyond the interest rate: Many lenders have "teaser rates" to lure you in. Even more important than your rate is your loans APR (Annualized Percentage Rate). Discount points, lender origination fees and PMI (Purchase Mortgage Insurance) are also included in the APR calculation. This is really the actual cost of the loan

Next: "5 Signs Your Contractor is Ripping You Off"

Martin Tkalla Keaton is a senior associate and Multi Million-Dollar Club member of the Corcoran Group.