You are finally going to do it — you decided that it’s about time that you purchase your first home. While this is a big decision in your life that may seem a little scary, there are ways to alleviate any stress so that your home purchasing journey is the best that it can be.

Check Your Credit Report and Score

One of the most important aspects of your home buying experience is going to be the credit score that you currently have. This important number indicates how trustworthy you are at paying back money that has been lent to you. The higher this number indicates your ability to pay back lenders in their specified periods of time. When your credit score begins to dip, it shows that you’ve been tardy and less reliable at paying back your debts.

620 is the minimum score that you’ll need if you decide that you want to use a conventional loan to fund the purchase of your new house. If you don’t have the larger down payment that a conventional loan requires — 10 to 20 percent –you can see if you qualify for an FHA loan. In that case, the lowest that your credit score can be is 580. Unfortunately, if your score drops under this number, you won’t qualify for your new home.

Another reason to keep your credit score as high as possible is that you are rewarded with a lower interest rate when you have a credit score that is considered excellent. This score is typically in the 720+ range and requires you to have perfect credit. You will also want to check your current credit reports to make sure that they are free and clear of any debts. You can do this for free once a year by visiting annualcreditreport.com

Evaluate Your Assets and Liabilities

At this point, you’ll want to evaluate the assets and liabilities that you currently have. Your assets will include any free cash that you can use to cover the down payment for your new home. If you’ve been saving for this moment for a while, you should know how much you have in your bank account. You will also need to evaluate your income and liabilities. The cash flow that goes in and out of your household each month is important to a lender. It shows if you are able to make monthly payments and not get into trouble with other outstanding debts. Typically, the ratio for the house payment that you make each month should not be higher than 28 percent of your monthly income and 33 percent for your house payment plus any other outstanding debts if you are attempting to obtain a conventional loan. These numbers will be more forgiving if you are trying to qualify for a government-backed FHA loan.

Get Your Documents In Order

To qualify for your new home, you’re going to need to show a lender specific items that relate to your income and taxes that you pay. Typically, you’ll need to provide tax returns and W-2’s for the past two years. In addition, they will probably ask for a couple of recent pay stubs and bank statements too.

See What You Qualify For

Now it’s time to see how much you can spend on your new home. Use a new house calculator to determine how much house you can afford. This will estimate a monthly mortgage amount that can pay. You can’t go over that 28 percent debt to income figure if you are trying to obtain a conventional loan. The calculator can run you through different scenarios by inputting different down payment figures, loan terms and interest rates. If you plan on spending a considerable length of time in your new home, use 15 to 30 years for the loan term. If you know that you’ll be moving in a few years, an adjustable rate mortgage may suit you better and you’ll want to use 3 to 5 years for your loan term. Talk with a mortgage lender to see what current rates are and get a better idea on closing costs.

Searching For Your Dream Home

It’s finally time for the best part of the home buying process — you get to search for your new home. Pull up a site that lists available homes for sale in your area. Plug in the criteria that matches the features that you want in your new home and be sure to filter for the maximum price that you can afford. After you’ve found a few houses that look like possibilities, compare agents and find a local real estate professional that can help you with the purchase.

After you’ve done all of these steps, it’s time to sit back and wait for the process to move along at its own pace. An appraisal will need to be performed as well as a title search on the property and evaluation of your financials. If all goes well, this may take between 20 to 60 days. This depends on the location that you are shopping for your new home and the current volume of sales. After that, if all goes well, you’ll be spending time in your new home.