Buying your first home is exciting, but it can also be overwhelming. This guide breaks down the process into manageable steps to help you navigate the journey with confidence.

Step 1: Check Your Financial Health

Before you start looking at houses, you need to know what you can afford. This means checking your credit score and saving for a down payment.

• Credit Score: A higher score generally means a lower interest rate. Aim for 620+, but 740+ gets the best rates.
• Debt-to-Income Ratio (DTI): Lenders want to see that your debts aren't too high compared to your income. Aim for a DTI below 43%.
• Down Payment: While 20% is ideal to avoid Private Mortgage Insurance (PMI), many first-time buyer programs allow for as little as 3-3.5% down.

Step 2: Get Pre-Approved

A pre-approval letter shows sellers you are a serious buyer and tells you exactly how much a lender is willing to lend you.

Note: Pre-qualification is just an estimate. Pre-approval is a verified commitment.

Step 3: Find a Real Estate Agent

A good agent will guide you through the process, negotiate on your behalf, and help you find homes that meet your criteria. As a buyer, you typically don't pay the agent's commission.

Step 4: Start House Hunting

Make a list of "must-haves" vs. "nice-to-haves." Consider location, school districts, and potential for appreciation.

Step 5: Make an Offer and Close

Once you find the right home, your agent will help you make a competitive offer. If accepted, you'll move to inspection, appraisal, and finally, closing.