Steps To Buying Home For First Time Official

While 20% is the gold standard to avoid private mortgage insurance (PMI), many first-time programs allow as little as 3% or 3.5% down.

Set aside an extra 2% to 5% of the home’s purchase price for taxes, lender fees, and title insurance. 2. Get Pre-Approved

A higher score gets you better interest rates. steps to buying home for first time

If the inspection and appraisal pass, you’ll head to the finish line. You'll do a "final walkthrough" to ensure the house is in the agreed-upon condition. At the closing meeting, you’ll sign a mountain of paperwork, pay your closing costs and down payment, and finally receive your keys.

Now for the fun part. Make a list of "Must-Haves" (number of bedrooms, school district) and "Nice-to-Haves" (granite countertops, hardwood floors). While 20% is the gold standard to avoid

When you find "the one," your agent will help you determine a fair offer price based on "comps" (what similar homes nearby sold for recently). You’ll submit an offer with an —a small sum that shows you’re acting in good faith. Be prepared for a counter-offer or a bidding war. 6. Inspection and Appraisal

Once your offer is accepted, you are "under contract," but the deal isn't done yet. Get Pre-Approved A higher score gets you better

A "pre-qualification" is a quick estimate, but a is a lender’s written commitment to loan you a specific amount. In a competitive market, most sellers won't even look at your offer without a pre-approval letter. It proves you’re a serious, vetted buyer. 3. Find a "Buyer’s Agent"