If you're tired of renting, and you'd like to buy your first home, you need to make sure you're ready to take the step. There are a number of issues you'll need to consider before you begin searching for the perfect home. Not taking these things into consideration could leave you on the losing end your search for a home loan. Unfortunately, without a home loan, you can't buy a house. Here are three pieces of information you should take into consideration before applying for a home loan.

Asset to Debt Ratio

When it comes to being approved for a home loan, a mortgage company will look at your asset to debt ratio. Those are some of the most important numbers you can look at when determining if your ready to apply for a loan. To begin, make a note of your monthly income. Next, make a note of all your monthly debt. Now subtract your debt from your assets. If your debts eat away at more than half your monthly income, you might not be ready to buy a house. Spend a few months paying off your smaller debts.

Length of Employment

If you're trying to buy a home, you'll need to show a stable work history. A mortgage company will want to see that you've been on the job for about two years. Holding the same job for more than two years will show stability. It will also give the lending company the information they'll need to track your monthly income for those past years. This will give them a clearer picture of whether you'll be able to afford your monthly payments. If you have been on the job for more than two years, it's important that you not change jobs prior to applying for your loan.

Credit History

When you apply for a home loan, the lending company will pay close attention to your credit history. While your credit score is important, there are actually three other aspects of your credit report that lenders will pay close attention to.

Good Credit

The first thing lenders will look at will be your good credit. Your good credit signifies your history of paying your bills on time. Lenders prefer to see a report that shows more good credit than bad.

Bad Credit

If you have a credit report that shows bad credit, that shows to a lending company that you've had trouble paying your bills. This will weigh heavily in a lenders decision to approve you for a loan.

No Credit

Having no documented credit is not necessarily a bad thing. However, it will require you to find other ways to alternative lines of credit; those that do not report to credit bureaus. This would include auto insurance payments, or utility bills that have been paid on time for at least 12 months in a row.

Now that you're ready to buy your first home, make sure you're ready to be approved for a home loan. Use the tips provided here to prepare for the home loan process and get in touch with a realtor.