Buying your first home is one of the biggest financial decisions you will make. This guide will help you navigate the process with confidence.
Step 1: Check Your Credit
Your credit score affects your loan approval and interest rate. Check your credit report and fix any errors before applying.
Step 2: Determine Your Budget
Use the 28/36 rule: spend no more than 28% of gross monthly income on housing costs and 36% on total debt.
Step 3: Save for Down Payment
While 20% is ideal, many programs allow as little as 3-5% down. Remember to factor in closing costs too.
Step 4: Get Pre-Approved
A pre-approval letter shows sellers you are serious and helps you understand how much you can borrow.
Step 5: Find a Home
Work with a real estate agent to find properties that meet your needs and budget.