Becoming a homeowner means making what’s probably the largest purchase of your life to date. It’s an enormous financial obligation, and if things don’t go according to plan, your finances can be significantly affected for a long time.

     When it comes to your household’s finances, there are some things to get in order. Both to be certain you’re ready to become a first-time homebuyer and to make it as affordable as possible. Here are four financial fixes to make before buying a home.

Straighten out your credit

     Your credit history has a huge impact on your success (or failure) as a first-time homebuyer. A poor credit score can completely disqualify you from obtaining a mortgage. And better scores can save money by making you eligible for better mortgage interest and insurance rates.

     If you’re even thinking of becoming a homeowner, it’s important to request a copy of your credit report. Examine it for errors and old derogatory entries, and contact the creditors to request they be removed. Also, look at your history of late payments. Where can you improve? The simplest way to improve a credit score is to pay down debt and make all your payments on time.

Develop a monthly budget

     Everybody says they have a budget, but not everybody actually does. If you’re thinking of becoming a homeowner, you should probably sit down with your favorite spreadsheet software and come up with a true budget.

     If you feel like you don’t know where your money goes, it’s probably because you don’t have a budget. Making one involves tracking every dollar you earn and allocating it to something. Your income should be earmarked for housing costs, food, clothing, transportation, long-term debt, entertainment, savings and whatever else you can think of.

     You don’t want to take on a house payment – probably your biggest monthly expense – without knowing how much you spend on everything else.