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I went through the same process a while back. I would highly recommend checking out the rates on bankrate.com. There you will find the range of rates in your area and the fees associated. If you don't plan on living there long term, a 5 or 7 year ARM may be the best option for getting a low rate.
You should also try to avoid PMI (private mortgage insurance) if you are putting down less than 20%. There are many options for putting down a lower down payment and still avoiding PMI. The first mortgage is for 80% and the remainder is paid by a HELOC and cash (i.e. 80/20, 80/10/10, 80/15/5).
Also be sure to budget for about 2-3% in closing costs. There are application fees, title work, legal fees, appraisals that all need to be paid. As far as loan qualification goes, they will generally approve you for a housing expenses of 28% of your gross monthly income, with a total debt ratio of 36% (housing + other expenses). The 28% includes, principle + interest, HOA/condo/coop fees, property taxes, homeowners insurance.
Hope that helps.
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2008 BMW 535i Space Gray, Black Leather, Dark Bamboo Trim| Sport Automatic with Paddles | Sport Package
2008 BMW M5 (gone, but not forgotten) Space Gray, Silverstone Merino Leather, Madeira Walnut Wood Trim | 7speed SMG | All options
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