[RKgemm]

I've never applied for a home loan before (can't afford the homes in Los Angeles) but my husband and I are going to be moving to Florida (around the Daytona Beach area)

Anyway I would like to hear people's experiences with prequalifying for a loan and what we can expect. Which companies to stay away from...

There are so many companies/ banks out there it's hard to choose.

[chaz longue]

RKgemm -
I'm a Realtor with almost 2 decades of helping buyer clients work with mortgage lenders.

I don't know exactly what your situation is, but - I can't say strongly enough how well served you'll be if you use a local lender. Ask around. Find a mortgage professional who comes with rave reviews and who has been in the mortgage business for a while. Preferably a long while. It's fairly easy to get in to the business, and the quality of mortgage folks varies a great deal. You'll also want somebody who has a lot of mortgage programs available, and who is very familiar with the special state specific programs offered for first-time homebuyers in your state if there are any. You'll also want somebody who seems happy to work with you and answer questions. You may find you're Mortgage PROGRAM shopping as much as RATE shopping. You'll know you've found the right person over the phone, when he/she begins to ask very specific questions. Or when he/she suggests you come in because there are a lot of detailed questions to ask.

The internet is a great place for satisfying your curiosity and using the available tools to get oriented. But in my opinion, there's just no substitute for sitting down with a professional who can offer a variety of mortgage programs, and has a lot of experience. There are just too many variables, and too many questions specific to your own personal situation that simply can't be addressed otherwise. I think it's also an benefit to be able to talk with somebody who has a LOCAL reputation to uphold, and a local office to walk into.

In my state, there are even non profit organizations which offer home buying classes and can help make recomendations based on your situation. They can help you look at your finances and credit report and make recommendations.
Best of luck to you.