Of course owning a home is your dream, but before you call a realtor, before you start reading house for sale ads, before you visit with your banker start by getting your house in order.

DEVELOP A MONTHLY BUDGET.

Like too many of us, you’ve probably been winging it. That’s why this is one of the most important and easy things to do. Start with your current take-home income and subtract your real non-housing expenses. The number that’s left is what you can actually afford to pay for a housing. Don’t get ahead of yourself and let someone else tell you, you can afford more. Taking this step will help you avoid financial hardships later.

As a general rule, you shouldn’t plan to spend more than 30% of your income on housing.

START SAVING MONEY.

Even with creative financing, buying a home is going to require cash out of your pocket. Your down payment amount will depend on the type of loan you get, but there will also be closing costs, and of course cost of moving and getting setup in your new home.

CHECK YOUR CREDIT REPORT.

Your credit report – you have three of them – are a record of how you’ve paid and borrowed money. You can