Planning ahead can save you time and headaches when purchasing a home. Find out what you need to know before you need to know it.

It is a well-known fact that apartment life has a lot to offer: Someone takes care of the grounds from mowing, edging and snow removal. If something breaks they fix it. Some provide trash pickup and recycling. They usually have assigned parking, some offer garages. Most apartments are near jobs, businesses and schools, usually on bus routes.  Renting affords some unique opportunities, especially if your life is in transition, your career is not yet established or you’re finishing higher education, especially if one intends to relocate after graduation. Having the freedom to pick up and move to another apartment across town or across the country is part of the appeal.

An upside to renting an apartment  is that it is relatively easy to secure one even for the very young. An application fee, a credit check, a security deposit, and once approved, you’ve got a key to your new digs. If you later discover you don’t like the neighborhood, you can find another one. This freedom appeals to the single, newly single and couples starting out as well as those who are downsizing. Renting allows the financially savvy to save money.

While some people feel the need to be transient, still others feel strongly about putting down roots. For them, renting may be a stepping stone in the goal to buy a home. If you fall into this category, and are a first time potential homebuyer, many pitfalls can keep you from your goal. While socking money away in saving for the down payment, keep in mind these factors that can aid your ability to buy a home.

Find a job you can work for at least two years. If you work a second job to build up your savings, know that you may not be able to list that job for income purposes if it changes. None of us can see into the future. Occasionally a job loss will come out of left field. If you are able to get another job in the same field, should keep you in the running.

Manage spending by not maxing out your credit cards and adding to your savings regularly. If you have debt, especially student loans, make certain that you pay all of your bills on time. This goes a long way toward showing responsibility. Some credit reporting goes back as far as ten years (bankruptcy, repossessions etc.) and most lenders require a history of on-time payments. Even one missed payment can prevent you from purchasing until you have a succession of on-time payments. This period of time is generally one year.

Buying a new car can impact a home loan already in progress. However, if your plans for pre-approval are at least six months off, timely modest car payments will further your credit score as long as you keep your debt to income ratio around  43%.

If you are self-employed lenders require you to keep meticulous records and to have filed income taxes for the last two years. Most lenders require proof of funds and that is easier for all parties concerned when you have a bank account. More so if you are a business owner.

When purchasing a home, filling our paperwork and dealing with lenders, it is imperative that you are completely honest.  If you have any questions discuss them your loan officer, especially those things which may potentially prevent closing the deal. By keeping these points in mind as you begin your journey, you will be on your way to purchasing a home with fewer delays and a lot less stress.

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