Before looking at listings, you must understand your borrowing power and clean up your credit.
Once you have your pre-approval letter, you can start hunting with a clear "needs vs. wants" list. 10 First-Time Homebuyer Mistakes To Avoid - Bankrate
: Use the 28/36 rule —housing costs shouldn't exceed 28% of your gross monthly income, and total debt shouldn't exceed 36%. what to do when buying your first house
: You'llBudget 2% to 5% of the purchase price for closing costs .
Buying your first home is a multi-step process that begins with strict financial preparation before you ever visit a property. 1. Get Your Finances House-Ready Before looking at listings, you must understand your
: Start collecting your last two years of tax returns, W-2s, and recent bank statements. 3. The Search and Offer Phase
: A good agent helps you navigate negotiations, handle paperwork, and find up-and-coming neighborhoods. 10 First-Time Homebuyer Mistakes To Avoid - Bankrate
: Lenders use this to set your interest rate. A higher score (740+) typically secures the best rates.