Buying a house can be one of the hardest financial decisions one has to make in his lifetime. But with some simple planning, this can be made much easier. Whether it is your first house or you are planning to move, a lot needs to be done in preparation phase. First of all, you need to decide upon your budget. Prepare the estimate of how much can you shell out on your house so that other expenses may not suffer in future. Take into consideration your income, debt, child care expenses, and set aside money for unforeseen circumstances. By preparing your personal budget and seeing what the bank is ready to offer, you can come up to a decent mortgage value.

The next step is to get pre-approval from the bank for your mortgage. After this, you can begin your search of houses in your price range by hiring a real estate agent. Pre-approval has many advantages, it is considered desirable by many real estate agents and also house sellers in comparison to those clients whose loan is not approved. You should also choose your agent wisely as he acts as your representative and provides all market prices. Lastly, remember to add all additional expenses like insurance and property tax to your total budget.