So you are preparing to buy a home? Congratulations! Now that you have decided to take this huge responsibility, it is time to look at if you are truly financially prepared to support a house payment.

What were you doing before? Renting a home or apartment? Lived in a town home or condo? You should compare the place that you currently live with where you want to live and compare expenses. More often then not, an apartment complex or rental home has some utilities included. When you purchase your own home you are fully responsible for the trash, water, electricity, gas, gardening and so on. These extra expenses can really add up, so make sure you add this to your expense list when comparing renting and buying.

How does your credit history look? Take a look at your credit report and make sure all items are correct. Are there credit cards you could pay off or correct a problem with a creditor that have due to mistakes made in the past? It can be fairly simple to clean up the rough edges of your credit in a short amount of time, as long as the problems are not too major.

Are you making enough gross income? Is your income greater than your debt enough to support the new, more likely more expensive house payment, including the additional expenses of maintaining a home? You want to make sure you have some cushion between your total income and debt to cover emergencies, repairs, perhaps additions or improvements to the home. By looking at your total income and debt, it can help you determine how much money you can really afford every month for a house payment.

How does your long term debt look? Is your car payment going to be paid off soon or are you planning on getting a new RV, boat or motorcycle? It is a good idea to look at what it is you want to do in the future such as purchasing a more expensive item that may need financing. If you tie up your money in the house, but had plans to purchase something else in the future, you may not be able to do it all.

It is good to have a financial outlook for the next 5-10 years, or as long as you are planning in living in the house. By doing this, you can plan for your home, other long term debts, vacations, business ventures, or whatever it is you may want to accomplish during that time. The last thing you want to do is come to an opportunity and not be able to do it!

Before purchasing a house, it is a great idea to limit your expenses to the best of your ability and cut out unnecessary or frivolous spending. It is amazing how much money you can save by simply being conscious and planning as to where your money is going. When you purchase anew home, it can be overwhelming and having a decrease in expenses can make the transition more comfortable for you. You never know when some extra cash will come in handy!

Always have documentation to prove your total income, expenses, debts and credit history prepared for a broker or lender who is going to be helping you with the transaction. When you have documents and support in place and ready to give to a broker or lender, you can feel secure in the fact that you are clear on your financial situation and know exactly where you stand as opposed to the broker or lender telling you where you are at.

The more prepared you are for this transition the better! Get your finances in order and cleaned up so that you can get the best rate on your mortgage and enjoy the experience of buying a house as opposed to it being a hassle. Good luck!

John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://www.scourtheweb.com/mortgage/.