Are you ready to start your home search?

For most families, buying a home will be the largest investment of their lives. Before you start shopping for a home, make sure you have a plan. These are four essential things you need to do before you look for your dream home.

Get Your Credit in Shape

The mortgage industry has changed quite a bit over the past few years. However, one thing hasn't changed: the higher your credit score, the lower your monthly payments.

If you're credit score comes in below 660, you will likely need to pay a higher down payment. A lower credit score often means a higher interest rate and fees, as well. However, if your credit score tops the 700 mark; you'll be in good shape to get a good deal. Those with credit scores over 750 will have access to the best deals and the best rates.

Before you start shopping for a home, take time to pull your credit report. Make sure you're not being penalized unfairly for old debts you've paid off or settled. It's also a good idea to avoid opening any new credit accounts for about a year before you buy a home.

Find Out How Much Home You can Afford

If you want to ensure you don't end up in a home you can't afford, take the time to assess your budget. It's important to keep your housing expenses at a reasonable amount, usually 25% of your monthly take home income or less.

When calculating how much a new home will cost, make sure to include all of the expenses. Along with your monthly mortgage payment, you'll also need to consider taxes, home insurance, mortgage insurance (if applicable) and maintenance in your calculation.

Start Saving

You'll need a large amount of cash for the down payment and closing costs. The down payment may range from 3% up to 20% of the purchase price, depending on your credit score. Along with the down payment, you'll also need to save for closing costs. On a $200,000 mortgage, the closing costs will run from about $2,300 up to about $4,000.

Of course, you don't want to go into a new home purchase without any money left. Saving for the down payment and closing costs will only take care of the initial expense. It's also a good idea to save about 3 to 6 months' worth of expenses as an emergency fund.

Being prepared and organized can help put your dream home within your reach.

Get Pre-Approved before You Shop

After you've taken the time to work on your credit, figure out how much house you can afford and save for the down payment and closing costs, it's almost time to start shopping. However, getting pre-approved from a mortgage lender first will save you plenty of stress. With a preapproval, you'll know exactly how much you can afford to spend on a new home. Don't wait until you fall in love with a property to speak with a lender. Get pre-approved before you start house hunting.

Once you've gone through these steps, you're ready to start shopping for a home. Search properties near you now to find the house of your dreams.