Know your current financial situation

Do an analysis of what your current financial situation is: where your money comes from and where your money is presently going as well an analysis of how a house purchase will affect your budget. Be sure to make provisions for utility cost changes (either higher or lower) and maintenance and repairs, as well as the proposed mortgage payment. You can print a detailed budget analysis here:

Many people have many small credit accounts totaling less than a few hundred dollars. You may want to pay them down to a zero balance, but you don't want to pay too much debt off, for it may affect your down-payment scenario. The less debt that you have will make your Mortgage Approval go a lot easier. Consult your mortgage loan officer with any additional questions you might have.