FAQ

You are usually ready when you have a steady income, manageable debts, some savings for a down payment and closing costs, and plan to stay in the home for 3-5 years. Lenders also check your credit and make sure you still have money left over each month after the mortgage payment.

Most buyers stay near a total monthly housing cost (mortgage, taxes, insurance,HOA) of roughly 25-33% of their gross monthly income, depending on their debts and comfort level. A lender can give you a more precise number during pre-approval by reviewing your income, debts, and credit and calculating your debt-to-income ratio.

You do not always need 20% down; many first-time buyer programs allow a little as 3-5% down, and some special loans (like VA loans or state programs) can even get lower. Putting less than 20% down often means you'll pay private mortgage insurance (PMI) or a similar fee until you build enough equity.

You will pay closing costs (typically several percent of the purchase price) that include lender fees, appraisal, title fees, and prepaid tax and insurance. After closing, budget for moving, utilities, and ongoing maintenance or repairs.

Pre-approval is when a lender reviews your documents (pay stubs, W-2s, bank statements, credit) and issues a letter estimating how much you can borrow and on what terms. It strengthens your offer with sellers by showing you are a serious buyer with verified financing and helps you shop in the right price range.

An agent helps you understand the local market, find suitable homes, analyze value, draft and negotiate offers, and guide you through inspections, appraisals, and closing. For buyers, their commission is sometimes covered by the seller, if not the buyer will pay the agent commission. Note, commission can be negotiated.

An appraisal is ordered by your lender to estimate the home's market value and confirm the property supports the loan amount. A home inspection is an in-depth review of the home's condition (structure, systems, safety issues) that helps you decide whether to move forward, renegotiate, or ask for repairs.

While this may vary, the basic steps are: get per-approved, choose an agent, shop for homes, make an offer, go under contract, complete inspection and appraisal, secure your final loan approval, and then sign closing documents and receive keys. After closing, the deed is recorded in your name and you become the legal owner.