Cyoung,
You can save yourself a lot of time and grief very easily.
Ask your friends, co-workers and relatives if any of them can recommend a mortgage broker. If not, just start calling through the yellow pages. This is NOT the same as a bank loan officer.
A good broker will talk to you over the phone, run your credit history, then give you an honest opinion on your chances of getting a loan. The broker doen't make the loan, just finds it for you, and gets a commission from the lender. My broker only charged me for the credit report, about $20.
He reviewed everything with my girlfriend and I, then was able to find us a loan. My gf had changed jobs three times in two years, a bad thing to a loan officer, and I had not had a real 9-5 job for four years! I'd been working constantly as a freelancer in my field, and had worked for most of the major companies in my area and could prove it with copies of billing records and tax statements.
He worked hard, and got us pre-approved. With that we found a buyer's agent through a friend. This is a real estate agent that represents you, the buyer, and NOT the seller. His job is to find you the house you want, can afford, and get the deal done for YOU! Most re agents contractually work for the seller, and thus do not have your best interest in mind.
The loan broker only gets paid when you sign for the mortgage, and the buyer's agent only gets paid when you close on the house.
Perfect for you!
Start with a broker, he'll be able to tell in 20 minutes if you're even in the ballpark, and what it would take to qualify you. It could save you years of rent.
Good luck, you won't regret it.
Pepper