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What's your financial situation?
Credit cards, utilities, car payments, childcare and groceries are factors to consider. Will you be able to handle unforeseen emergencies, monthly bills and a mortgage payment? As a rule of thumb, no more than 28 percent of your gross monthly income should be used for housing payments.

Delinquent credit card and bank payments, past bankruptcies or a student loan that's unpaid can severely affect your ability to get a mortgage loan. For a small fee you can obtain a credit report and clear any misunderstandings before applying for a loan.

Credit Unions:
Experian 1-888-EXPERIAN (397-3742)
Equifax 1-800-997-2493
Trans Union 1-216-779-2378

What's your employment history?
If you have been working continuously for the past two years, a lender should consider this to be steady employment. However, if your work history has not been continuous for the last two years, as long as you have a reasonable explanation for any breaks in employment, you still may qualify for a loan.

Have you saved money for a down payment and closing costs?
In addition to borrowing money for your home, the lender will require you to invest, in cash, 5 to 20 percent of the purchase price toward the loan. If you are looking at a $100,000 home, a ten percent down payment would be $10,000.

Closing costs are additional expenses incurred throughout the buying process that must be paid for in cash, such as attorney and inspection fees, escrow charges and document fees. Closing costs are typically 5 percent of the purchase price of your home, so add another $5,000 to your $100,000 home