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
: Start collecting your last two years of tax returns, W-2s, and recent bank statements. 3. The Search and Offer Phase what to do when buying your first house
Before looking at listings, you must understand your borrowing power and clean up your credit. Buying your first home is a multi-step process
: You'llBudget 2% to 5% of the purchase price for closing costs . : Use the 28/36 rule —housing costs shouldn't
: Use the 28/36 rule —housing costs shouldn't exceed 28% of your gross monthly income, and total debt shouldn't exceed 36%.
Sellers often won't consider an offer unless you have professional backing and proof of funds.
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