A house will be the single largest purchase most families will ever make. If you are going to make this purchase a good decision, you will want to be sure all your finances are in good order. These six steps will make your process of buying your dream home much simpler.

Build up some Savings-You probably know this, but it bears pointing out. When you purchase your house, you are going to be placing yourself in a great deal of debt. Make certain that you have the financial cushion to protect yourself if something goes wrong. Beyond that, be ready to make a sizable down payment, usually around 20 percent of the house' price.

Establish a Budget and Stick to It-Think about the terms of your loan. How will they interact with your other bills? If your house is larger than where you live now, your utilities will be higher. What kind of fees will you have with your home that you aren't paying now? Homeowner's association? Other features of the house? Make sure your budget will support you in good times and bad.

Think About Where You Want to Live-Don't stop when you've found a nice neighborhood. Look into its tax rates. If children are in your future, think about the schools. How will this location affect your travel to work?

Consider the Length of Your Home Loan-In general, you will have the chance to take out your home loan for either 15 or 30 years, though you may be able to work out a deal in between. The most important factor to consider is the difference in payments. A shorter loan will have a much lower interest rate, but will have higher payments than a 30 year loan. Be certain that the terms of the loan are going to work with your budget no matter your finances.

Pay Down Your Debt- Paying down your debt now will raise your credit score, potentially allowing you access to better rates on your loan. In addition, your mortgage will be a very large debt. You can make it easier by making your other commitments smaller.

Start gathering paperwork-Put together your financial records, student loan statements, credit card bills, anything your mortgage lender could conceivably want. Applying for a loan involves a lot of paperwork, and a little diligence in scouting it out now will save you a lot of trouble later.