Before searching for available homes, you must ensure you’re ready to make a long-term financial commitment. This includes more than simply your annual income. Creditors will want proof of financial stability. Financial considerations include:

Employment History: Be ready to explain any gaps in your work history and whether your income has fluctuated in the past two years (and why).

Credit History: Your creditworthiness will be reflected in your credit score (based on credit card balances, timeliness of payments, collections history, etc.).

Available Cash for Down Payment: Most loans require a down payment. The more you pay upfront, the better your loan terms will be (lower monthly payments, lower rate).

Cashflow: Generally, you don’t want your mortgage payments to exceed 28 percent of your monthly income, but you also need to consider the cost of ownership (maintenance, emergencies, improvements, etc.).

credits: findlaw.com