Buying a home is exciting but can feel overwhelming. Here’s a straightforward guide:
1. Assess Your Budget
- Review income, debts, and monthly expenses.
- Use a mortgage calculator to estimate payments.
- Factor in property taxes, homeowners insurance, and HOA fees if applicable.
2. Save for a Down Payment
- Aim for 20% to avoid private mortgage insurance (PMI), but many loans accept less.
- Don’t forget moving costs, inspections, and initial repairs.
3. Get Pre-Approved
- Contact multiple lenders for pre-approval offers.
- Pre-approval strengthens your offer when you find a home.
- Compare interest rates, APR, and lender fees.
4. House Hunt Smartly
- Prioritize needs vs. wants.
- Research neighborhoods, school districts, and commute times.
5. Make an Offer & Inspect
- Work with a trusted real estate agent.
- Always schedule a home inspection to avoid hidden issues.
6. Closing Costs
- Budget 2–5% of the purchase price for closing.
- These include lender fees, title insurance, and property taxes.