If you are planning to purchase a house within 4 months, call a lender and start working on the pre-approval. 

According to Michael Wiegert, Mortgage Production Manager at Renasant Bank - Memphis, "A credit report is good for 120 days. So, if the credit report looks good, you will be good to go once you find a home. But, if there are any issues on the report, the lender can advise you on what to do to potentially bring up your scores. Every additional 20 points to your score can save you money on your mortgage loan. Additionally, the lender can tell you if any debt needs to be paid off in order to get your debt ratio within guidelines."

Michael also pointed out these helpful tips:

- Make sure that any liquid assets you are using for down payment and closing costs can be verified. The money needs to be in a bank account, retirement account, or brokerage account, and any large deposits must be seasoned in the account for 60 days, or you will have to provide an explanation and documentation.

- If you are planning on purchasing a home soon, try not to incur any other new debt before talking to your lender. That new car payment might ultimately be the reason you can’t be approved for the home you want.

- If you are planning on starting your own business, and you haven’t previously been self-employed, this will impact your ability to get mortgage financing. Any self-employed income must be seasoned for at least one year, and preferably two years.  Additionally, at least on tax return is required to verify the self-employed income.