Prepare for Home Ownership

While it is possible to wake up one morning and decide that you want to buy a home, the process may go more smoothly if you prepare.

If possible you should look at your finances a year before you want to purchase a property. This means looking at your credit reports, getting your FICO score and doing your best to eliminate debt. You may not be able to do this a year ahead of time, but that doesn't mean you cannot do some of these things in the months before you start home shopping.

Once you have a picture of your credit situation, think about how much house you can afford. Crunch some numbers and play with a few different scenarios. Look into the related costs of home ownership, not just the mortgage. Think about how much you'll need to save for emergency repairs and property taxes.

Seek the advice of experience real estate professionals, rather than laypersons. One young person told me that they were advised to buy the most house they could afford. This may not be the best strategy. If you go out and get the biggest mortgage you think you can afford, you can run into trouble later.