: Research first-time homebuyer programs or down payment assistance that might be available in your area. 3. Assemble Your Professional Team
: Interview at least three realtors to find one who understands your specific needs and can negotiate effectively. what to do to prepare to buy your first home
: This is the first thing lenders review. A higher score often leads to lower interest rates. : Research first-time homebuyer programs or down payment
: Plan for a down payment (ideally 20% to avoid private mortgage insurance) and closing costs, which typically range from 1.5% to 5% of the purchase price. : This is the first thing lenders review
Before looking at houses, you must understand what you can actually afford.
: Don't just rely on what a bank approves. Use rules like the 30/30/3 rule (30% of gross income for mortgage, 30% of savings for a down payment, and a home price no more than 3x your annual income) to stay safe.
: Shop around and compare rates from at least three different financial institutions to find the best loan terms. Preparation Checklist: Documents You'll Need