One of the most exciting moments in a person's life is the day he or she buys a house. However, sometimes the process leading up to that moment can seem very complicated, and you may even feel discouraged. But don't worry! To help you buy your home, here are some factors to consider to give you a clearer picture.

1. Create a savings plan

Since buying a house usually involves substantial expenses (down payment, closing costs, etc.), the first thing you should do if you want to buy a house is to create a savings plan that allows you to have enough money for these initial expenses. Additionally, this savings plan will help you have a clearer understanding of how much money you can set aside for the expenses associated with owning a home. At this time, we recommend avoiding any unnecessary expenses so that you can save as much as possible.

2. Increase your credit rating

In general, to be approved for a mortgage loan it is necessary to have a good credit history. To achieve this, you must have credit experience, and make all your payments on time. If your credit is affected, we invite you to read the following content that can help you improve your credit: 5 ways to improve your credit in a short time.

3. Find out if you qualify for an FHA loan.

Loans insured by the Federal Housing Administration (FHA) are ideal for first-time homebuyers. If you have this FHA insurance, banks will offer you mortgage loans with lower interest rates and more flexible requirements to qualify.

4. Apply for a mortgage pre-qualification.

Before searching for a house, the first thing you should do is obtain a mortgage pre-qualification from a banking institution. This way, you'll have a clearer idea of the cost of the house that you will be looking for.  Additionally, many sellers will not consider your offer unless you are already pre-qualified by a bank. It is very important that you know that just because the bank approves a certain amount, doesn't mean you have to search for a house at that value. For example, if the bank pre-approves a mortgage loan for $200,000, you could search for a house of $150,000 or less, since the pre-approval only determines the maximum amount that can be loaned to you.

5. Find the house of your dreams!

What is your family composition? Do you live alone, with a partner or with children? Are you planning to start a family? Rural or urban? Apartment or house? The answers to these questions, in combination with your budget, will give you a clearer idea of ​​what type of house is best for you. Additionally, it's important to consider if the structure needs renovations since this will entail additional expenses. Other factors to consider are how close or far it is from your workplace and/or your children's school. In Puerto Rico there is currently a wide variety of houses and apartments for sale, so you have several options to choose from. Important: Do not commit to a seller without first evaluating the wide range of options on the market. 

By following the steps in this guide, you will soon be able to proudly say, home sweet home!