If you're looking to buy your own home, you should determine a few things before you go out looking for your dream place.

First, you have to determine how much you can afford. There are online calculators to help you determine how much you can afford to pay per month based on your income each month and the amount of your debt. To qualify for a loan, you want to have less than 20% debt-to-income ratio. Although it's still possible to get a loan if you have a higher debt, it's harder unless you have a perfect credit score. Remember to also budget for closing costs, which are about 2-3% of the price of the house.

Next, you have to determine if you can get a loan. Here are some qualities that most banks or lenders look for:

Enough money for the down payment (3 to 20% of the purchase price)

Two years of steady employment (same job or field)

Good (not perfect) credit score

Income that's 2 to 3 times higher than your expected mortgage payment

Total debt no more than 38% of your income, preferably no more than 18% debt.

If you think you can get a loan, you have several options to see what you amount you qualify for. First, you can go to your local bank and talk to a loan officer. Second, you can try an online lender. Third, you can try an online or local mortgage broker. Whichever option you choose, be prepared with proof of employment (such as paycheck stub) and $40 for a background and credit check.

If you're deciding between improving your credit score, which will take a few years, or to get a loan now, it may be best to get the loan now. The benefits from owning the home may outweigh the benefits of waiting.