The steps to buy a home include preparing for the process and your future purchase in addition to making a list of features and amenities you want your new home to have. However, before you focus only on the home you want to find and buy, be sure you have your financing arrangements in order so your closing process goes as smoothly as possible and you can sign for and collect the keys to your new home. Here are some steps to preparing for the loan qualification and financing for your next home purchase.

Pay Down Unsecured Debt

One of the first steps you can take toward buying a home is geared toward improving your credit score wherever possible. One of the biggest reasons a credit score is lower is due to too much unsecured credit card debt. This type of debt brings down your credit score because there is no asset tied to the debt, which you can sell in order to pay the debt off in full. 

And if you have a large amount of credit card debt, it can indicate to a lender that you either do not have enough income to pay for expenses and you put them on a credit card often, or you are not good with managing your money. To help you improve your credit score, look for any extra money you have to put toward your credit card payments. Start paying extra on one credit card to pay it down as much as possible. You might also look at refinancing the debt with a vehicle, or talk to your mortgage broker about including the debt with your mortgage loan as a way to get approved for the loan.

Apply With a Mortgage Lender

Next in the process you should apply for a mortgage with a mortgage lender. They will pull a credit report from all three credit bureaus and get your pre-approved then start to look for a home loan and rate you qualify for from a wholesale mortgage lender. Depending on the current market rates and your credit qualifications, you might be able to lock in on a low fixed rate mortgage through one of the wholesale mortgage lenders your broker deals with.

Or another way to save on the loan's interest for the first few years is to go with an adjustable rate mortgage. This provides you with a lower initial rate that slowly and incrementally increases each year thereafter.