Your Financial Profile

As soon as you've decided you want to buy a house, make certain you have a clear picture of your financial situation. Consider the following steps:

Find out how credit scores work and how you may be able to correct errors in your credit report, if there are any.


Do an analysis of where your money comes from and where it goes. Develop a household budget for your current situation. Stick to it.


Determine how much home you can afford.


Analyze how a house purchase will affect your budget.


Try not to add on any new debt. Since mortgages are based on debt to income ratios (the amount you pay out monthly versus the amount you bring in) new debt could throw the ratios off and make a previously approved mortgage unobtainable.