HOW TO PREPARE BEFORE LOOKING FOR A HOME



Know Your Budget

Before you begin your home search will help
you identify the monthly payment you can afford. Know how much you (and any co-buyers) bring in each month, subtract your total monthly expenses, and assess your savings
potential.

Most experts agree that you should spend no more than 30-percent of your monthly income on housing. Don’t forget that owning a home comes with additional costs to the mortgage such as utilities, homeowner’s insurance, property taxes, maintenance/repairs, and more.


Get A Down Payment Together

In most cases, a down payment is required to purchase a home. This up-front payment could be as little as 5 percent or as much as 20 percent of the purchase price of the home. Your agent and/or lender will let you know.



Gather The Necessary Paperwork

In most cases, a down payment is required to purchase a home. This up-front payment could be as little as 5 percent or as much as 20 percent of the purchase price of the home. Your agent and/or lender will let you know.

  • Your most recent tax returns
  • Your paystubs
  • Bank account statements
  • Any other asset or investment statements

Get Pre-approved

Lenders will compete for your business and the internet is full of mortgage lenders who want to lend you money. Shop around to find the best rate possible.

Once you’ve decided on a lender, get pre-approved for a mortgage. This will give you an idea of how much house you can afford. Also, a pre-approval lets sellers know you’re serious about buying their home.

Put all these documents and any others the lender requires in a folder and have them handy to help expedite the loan process.



Start Shopping

Now that you’ve gathered your down payment, organized the proper paperwork, and gotten pre-approved for a mortgage, it’s time to begin shopping for your new home.

Again, the internet makes it very easy to find homes for sale, but it’s a good idea to enlist the help of a knowledgeable real estate agent to find your dream home.


An agent can help you identify the homes most suitable for you as well as to navigate the often-confusing waters of the homebuying process. Buying your first or next home is exciting and overwhelming at the same time.