Did you know that one in seven Americans has at least 10 credit cards? It's true. However, the average is four, according to a report from Experian.

If you are considering buying a home, there are four crucial elements you must have in place before taking the first steps toward homeownership. Whether you are a first-time home buyer or moving up to a new home, plan for your move by preparing for the following:

1. Create a budget. Home buyers need to have enough money to cover monthly mortgage payments comfortably. "Properly budgeting your monthly finances is a must before taking any of the first steps towards finding and moving into a new home," Lawrence Finn, Jr., CEO Owner/Broker of Coach Realtor. Though seemingly an obvious preparation, many foreclosures occur because buyers don't carefully examine their income and expenses ahead of time and fail to plan for monthly mortgage payments. "Talk to mortgage professional within our firm's mortgage partner Residential Mortgage Division or a Coach Realtors sales associate to see if you can afford a monthly mortgage. The more financial planning you do in advance, the less likely you'll be in for any surprises," says Mr. Finn.

2. Plan for taxes and insurance. On the topic of affordability, be sure your income will cover any property taxes and homeowner's insurance payments. Buyers need to make sure their monthly income covers these extra expenses. While planning your finances, include these two items in your budget. Make sure to have other spending money and extra cash available as well. You never know when something will break down or need replacing.

3. Factor in maintenance. Buyers must also have the ability to properly maintain the home. "Maintaining the home is important. If the home isn't in good condition, you will lose value on what is most likely your largest investment and set the stage for a potential loss when it comes time to sell," says Finn. Don't ignore problems that need attention.

4. Review your credit standing. Lastly, a home buyer must have good credit – especially in today's lending environment. If you have late payments, a bankruptcy or unpaid debts, it will be difficulty to lock in a mortgage. If you do land a mortgage deal, the interest rate will be higher if your credit score isn't up to par. A good line of credit will ensure the best rates possible. Pay off those debts before trying for a mortgage.

With the right funds, maintenance resources and a good line of credit, you will be well on your way to jump starting the home buying process.

For new buyers, the world of mortgages may be a little confusing and entirely overwhelming. If you are mortgage shopping for your first new home, you definitely want to get the lowest possible rate that your credit score will grant.

While comparing rates and deals from various lenders, there are a few options and facts every consumer should consider. "Percentage points are extremely important to consider, and buyers should absolutely seek the lowest possible rates they can find," says Lawrence Finn, Jr., CEO Owner/Broker of Coach Realtors.

A 30-year fixed-rate mortgage of $400,000 at 4.3% would cost $1,979 per month, while the same loan balance at 5.3% costs nearly $2,221, according to numbers from Coach's mortgage partner Residential Mortgage Division, an affiliate of Wells Fargo Home Mortgage - a difference of almost $250 per month. Over one year, that 1% difference equals out to $3,000.

"Even small adjustments in mortgage rates can make a quite significant difference in monthly payments," says Mr. Finn.

A 30-year fixed rate mortgage is a great starter mortgage for first-timers, but it is still recommended that consumers to see what will work for them. A home mortgage consultant from Residential Mortgage Division can show you exactly how the numbers will play out; web-based mortgage calculators are also helpful.

If borrowers want to pay off their loans quicker than the standard 30 years, other options do exist, such as the 15-year fixed-rate mortgage. Adjustable-rate mortgages often have the lowest rates, but vary as the years go by. Most borrowers prefer the certainty of a fixed-rate. Borrowers with a higher credit score, usually receive the lowest rates. Lenders also look at a debt-to-income ratio of applicants.

"If you are not pleased with the mortgage rates you are receiving, work on raising your credit score and paying off some debt before applying," says Lawrence Finn, "Remember, every percentage point counts."