Don't just go with your primary bank. Compare rates and fees from at least three different lenders to save thousands over the life of the loan. [6] 5. Define Your "Must-Haves" vs. "Nice-to-Haves"
Typically 2%–5% of the home’s purchase price. [5]
Don’t drain your savings. You’ll need a "house emergency fund" for the inevitable leaking water heater or broken AC in month two. [1] 3. Get Pre-Approved (Not Just Pre-Qualified) steps to take before buying a home
Check for local or state programs that offer or tax credits. Many buyers leave money on the table simply because they didn't ask what grants they qualified for. [6]
Your score determines your mortgage interest rate. If it’s low, spend 6–12 months paying down debt to boost it before applying. [2, 3] Don't just go with your primary bank
Number of bedrooms/bathrooms, school district, and commute time. [1]
Lenders generally want to see that your monthly debt payments (including the new mortgage) don’t exceed 36%–43% of your gross monthly income. [4] 2. Save More Than a Down Payment You5% to 20% down payment. Ensure you have: Define Your "Must-Haves" vs
A pre-qualification is an estimate; a is a lender’s written commitment to loan you a specific amount after reviewing your tax returns and pay stubs. [6] In a competitive market, most sellers won't even look at your offer without one. [2, 6] 4. Build Your Team