Here are four signs you're on the right track to your dream home.

You've saved enough for a decent down payment.

You need to make a down payment to buy your home. Even government-subsidized housing requires a down payment.

If you start saving now, you can easily have the cash you need in five years. Figure out how much you need to save to buy a home and start saving now.

Photo: Internet

You have minimal debt

Mortgage companies will consider a number of factors when approving you for a home loan, and this includes the amount of debt you have. Many lenders even have a maximum debt-to-income ratio for their customers, meaning you may not qualify for a home mortgage if your debt-to-income ratio is above 43% or 45%.

To get the home you want, you need to start limiting the debt in your life. Not only will this help you qualify for a mortgage, but limiting debt will save you money on future interest payments.

You are about to get a higher salary.

Hopefully, you will earn more money in the coming years than you do now. If so, your overall financial picture will be brighter and you will be more likely to qualify for the home loan you want.

But that doesn't mean you should let your debt get out of control. If you keep debt to a minimum and increase your income over the next five years, your dream home could be within your reach.

You have an emergency fund

Home ownership requires you to pay property taxes and monthly mortgage payments. You also have to pay for insurance, maintenance, and repairs. The bottom line: Owning a home requires a lot of money.

But an emergency can ruin your ability to afford a home faster than you think. If you lose your job or have a medical emergency, you'll need a buffer to handle it and still have enough cash on hand to cover your housing costs. Experts recommend three to six months' worth of living expenses in a high-yield savings account to maintain your emergency fund.