Yes you can own a home, it starts with conversation and planning let’s do it!
Here are the key first steps when planning to buy your first home:
1. Check your credit score — Lenders use this to determine your mortgage rate. Aim for 620+ (conventional) or 580+ (FHA). Dispute any errors you find.
2. Calculate what you can afford — A common guideline is keeping housing costs under 28% of your gross monthly income. Factor in taxes, insurance, and HOA fees, not just the mortgage.
3. Save for a down payment — Typical targets are 3–20% of the home price. Also budget for closing costs (2–5% of the loan), moving expenses, and an emergency fund for repairs.
4. Research loan types — Compare conventional, FHA, VA, and USDA loans. First-time buyer programs often offer lower down payments or closing cost assistance.
5. Get pre-approved for a mortgage — Shop at least 2–3 lenders. Pre-approval gives you a realistic budget and makes you a stronger buyer when you make an offer.
6. Define your must-haves — Location, commute, school districts, size, and deal-breakers. Separate needs from wants before you start touring.
7. Find a real estate agent — Look for someone experienced with first-time buyers in your target area. As the buyer, their commission is typically paid by the seller.
8. Learn the local market — Are you in a buyer’s or seller’s market? Understanding inventory, average days on market, and price trends helps you make competitive offers.
9. Get familiar with ongoing costs — Property taxes, homeowner’s insurance, utilities, and maintenance (budget ~1% of home value per year) all add up quickly.
10. Avoid major financial changes — Don’t open new credit cards, take on new debt, or change jobs during the home-buying process, as it can affect your mortgage approval.