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1) Do you have a steady, reliable income?

In other words, have you been employed on a regular basis for the last two years and do you expect to maintain your employment?

2) Do you have a good record of paying your bills?

Have you made regular, on-time payments? If not, read on; there is still hope.

3) Do you have money saved up for down payment and closing costs?

Many home buyers think that that a down payment of 20 - 25% is needed. It's not. Many loans exist today that allow buyers to put down much less on the purchase of a home provided you have a good credit track record. The more you put down, the better it is for you though. And, the more you put down, the less emphasis they will put on your credit payment history. Not to say your credit report isn't very important, because it is.

4) Do you have the ability each month to pay the mortgage as well as additional costs that go along with home ownership, such as taxes, insurance and maintenance?

Think critically about this question. And if you are counting on two incomes in one family to make your mortgage payments, make sure it works in the short term for one income too. There are a variety of reasons, you could possibly end up with one income or limited income from one source for a period of time - from the birth of a child to unexpected job layoffs, it is best to be sure as you can keep up your mortgage during these unexpected times that are part of life.