A Home — Steps To Take Before Buying

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]

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 steps to take before buying a home

Typically 2%–5% of the home’s purchase price. [5] Your score determines your mortgage interest rate

You can change a kitchen’s backsplash, but you can’t change the lot size or the neighborhood noise level. [2] 6. Research First-Time Buyer Programs [6] In a competitive market, most sellers won't

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: