Step 1: Calculate Total Costs

Start with the basics: down payment, usually 5–20% of the property’s price. Add another 2–5% for closing costs, which include legal fees, appraisals, and taxes. Factor in recurring costs such as homeowners insurance, property taxes, utilities, and repairs — many new buyers overlook these and end up “house poor.”

Step 2: Check Affordability

Financial experts recommend that your housing costs (including mortgage and taxes) stay below 30% of gross monthly income. Use online mortgage calculators to estimate affordability before viewing homes. Remember that lenders approve what you can pay, not what you should.

Step 3: Strengthen Your Credit

A strong credit score unlocks lower mortgage rates, saving thousands over time. Pay down high-interest debt, avoid new credit applications, and correct report errors before applying for a loan.

Step 4: Build a Home Fund

Set aside savings not just for the purchase, but for emergencies. Experts suggest keeping three to six months of expenses post-purchase to cover repairs or income changes.

Step 5: Get Pre-Approved

Pre-approval gives you a clear budget and signals seriousness to sellers. Compare offers from multiple lenders — even a 0.5% difference in interest rates can shift affordability dramatically.