Before you start house hunting, you need to prepare:
Check Your Credit Score
You can get an idea of you credit score from your bank statements or an auto loan. However it is important to check your credit rating with the help of an experienced lender to get an idea of what you can afford.
The lender will check your credit history through the three credit reporting agencies, Equifax, Experian and Trans Union. This may be a good time to correct any information on your credit history that is not accurate.
You will need this information to document your income, assets and debts to secure financing for your property, so start pulling these details together right away.
Here are some important financial documents to collect.
Bank account statements
Credit card statements
Financial statements
Auto loan statements, along with details on any other loans you may have
Investment account statements
Copies of leases for any investment property you may own
Recent pay stubs
Tax returns for the last two years
401K statements, life insurance policies, details on stocks, bonds, and mutual funds you may own
Any other disclosures that are material to your financial situation. This includes but is not limited to marriage licenses, divorce settlements, child support, liens, bankruptcies, or judgments. If there's something that affects how much money you have on hand that isn't shown by simply looking at your salary, be prepared to document it.
Be Careful with your Finances
You need to show financial stability in order to secure a loan. Do not make any large purchases it will affect your mortgage qualification status.
Do your research
Drive around the subdivisions that interest you to see the neighborhoods and get a feeling of how it would be like to live there.