Resolve to Buy a New Home in the New Year

If buying a new home is on your wish list for 2016 - there are steps you can take now to make that dream a reality.

Resolve to do these things so you can be living in your new home sooner than you think!

1. Think about what you can really afford. The rule of thumb is that your house payment should be about 25% of your income. Review your budget so you know what type of home you can comfortably afford.

2. Be aware of your credit. Go ahead and pull your latest credit scores. Make sure there are no discrepancies or issues that need to be addressed with the credit bureaus. If you have any problems on your report work to get them resolved as quickly as possible.

3. Talk with a lender to become preapproved. Before you start the home shopping process - meet with a mortgage lender and discuss your financial situation. You can get preapproved which will dramatically shorten the length of the home buying process.

4. Save for a down payment. Received some cash this holiday season? Put that money in a fund towards a down payment on your house. Hold off on any major purchases that are not necessary and use that money towards your dream home.

5. Prepare for the mortgage process.  Obtaining a home loan is a lot of work. Get your financial records in order ahead of time to relieve some of the stress. Pull together pay stubs, W2s, bank statements, investment statements and insurance information.

Start these steps in the new year and you'll be on your way to a new home!