If you’re never applied for a mortgage before, you may not realize that you’re about to have every crevice of your financial life looked over by banks who consider you for a loan. You’d better make sure your financial house is in order.

Check Out your Credit Report and Score
Start your search by ordering copy of your credit report and finding out your credit score. Read more about how to get, understand, and improve your credit score and reports here.

If you’re worried that your score is looking kinda low (say, below 750) check out this Wall Street Journal article to find out some ways you can boost your score in a relatively short time. Just understand that “a relatively short time” in this case means months, not days. Which goes to a bigger point: If you’re thinking about buying a home, give yourself six to 12 months to get everything in order.

Pull Together your Financial Records and History
You’ll be amazed how much paperwork is involved with getting a mortgage. You’ll be asked to supply your tax returns from the last few years, pay stubs, bank statements and other bits and pieces from your life. Start gathering that info now, well before you even apply.

Collect and Deposit Family Gifts as Soon as Possible
A lender will view gifts from family members (and always call them “gifts,” even if you intend to pay your dad back—banks don’t like “loans” from third parties) differently than savings you diligently set aside over time. If it’s feasible, you should deposit any contributions from other people to your housing fund at least six months before you apply for a loan. That way, when your lender goes over your last few bank-account statements, it will appear as if the money was always yours and it won’t raise any questions.

Get Pre-approved
It’s a good idea to get pre-approved for a mortgage if you haven’t found your house yet (if you have found a place, then just go ahead and apply for the mortgage). What pre-approval means is that a lender has checked your credit and verified that you make and owe what you said you make and owe. The lender will also issue you a letter that you can show off to brokers and sellers, indicating that the bank has agreed to lend you a certain amount of money.

There are two big benefits to getting pre-approved: It shows sellers that you are serious, and it gives you a head start on the mortgage application process (so long as you decide to get a mortgage from that lender—you’re under no obligation to get a loan from the lender that pre-approved you).

Want to Know More?

• What is a Mortgage?
• Advice on Getting a Good Mortgage .
• Questions to Ask When Shopping for a Mortgage .