Buying Your First Home — Everything You Need to Know
Step 1: Check Your Credit. 740+ score gets best rates. 620+ minimum for most loans. Check 6 months before buying and fix any issues.
Step 2: Calculate Affordability. Use the 28% rule — housing payment should not exceed 28% of gross income. On $75,000 salary, max payment = $1,750/month.
Step 3: Save Down Payment. 20% eliminates PMI but 3-10% is possible. On a $300K home: 20% = $60,000, 10% = $30,000, 3% = $9,000.
Step 4: Get Pre-Approved. Not pre-qualified — pre-approved. This shows sellers you are serious and can afford the home.
Step 5: Find the Right Home. Location matters more than the house itself. Schools, commute, neighborhood safety, future development plans.
Step 6: Make an Offer. Your agent will help with comparable sales analysis. Do not skip the home inspection — it can save you thousands.
Step 7: Close the Deal. Budget 2-5% of purchase price for closing costs. Review every document carefully.
Use our EMI calculator to find your comfortable monthly payment.