Every important decision needs to be clearly thought out. Developing a Malibu home buying plan can help you focus on the important factors and organize the entire process. You may even want to use a binder with sections on house hunting, Malibu home financing, service providers, etc. Loan pre-qualifying helps you determine the home price you can afford and presents you as a genuine prospect to the seller. A lender typically uses the 28% formula (your monthly mortgage can't exceed 28% of your monthly income) in approving your loan. Planning your actions and getting pre-qualified will keep you out of the panic mode and allow you to take advantage of opportunities. A thorough plan will save both time and money!