If you have good credit and a steady income, you can probably qualify for a home loan; however, just because you qualify does not mean you are ready to buy a house. There are three main financial steps you should take before you make this big decision, and these steps will help you protect yourself financially before you step into buying a house.

Save up for a down payment

The first step you will need to take is saving up money for a down payment. Having a big down payment is a good idea for several reasons, and here are some of them:

• It will allow you to buy a more expensive house
• You will not have to pay private mortgage insurance (PMI)
• You may qualify for more loan programs
• You may be able to get better terms on your loan
• Your mortgage payments may be lower, or you might be able to choose a shorter-term loan

You should aim to save $20,000 for every $100,000 you plan on spending. In other words, aim to have a 20% down payment saved up before you shop for a home.

Have an emergency fund

The second thing to consider is having an emergency fund set up, and this should not include money you plan to use for your down payment. An emergency fund is a type of fund that can protect you if something happens, such as a loss of job. It can also be good for covering large unexpected expenses. The amount you have saved in an emergency fund should be at least enough to cover several months of expenses.

Evaluate your budget carefully

Finally, you will need to carefully look at your income and expenses and create a good budget. By doing this, you will be able to see how much you could afford to pay for a mortgage payment without being strapped for cash. If you need help with this, you could visit a financial adviser for help. A real estate agent may also be able to help you determine what type of budget to have when shopping for a house.

Taking time to make sure you are financially ready to buy a house is the best thing you can do for your financial future. If you have completed these steps and are ready to make this big purchase, you should contact a real estate agency to find homes that are in your budget.