1: FIND OUT WHAT YOU CAN AFFO U CAN AFFORD
The very first step in your homebuying journey is setting your price range—and it’s absolutely essential. Before you start searching for homes, you need to know exactly what you can afford. Start by building a realistic budget. Consider your down payment, closing costs, and the liquid reserves you’ll need to keep on hand after closing (checking, savings, retirement accounts, stocks, etc.). Then, look closely at your monthly expenses: mortgage payments, property taxes, homeowners' insurance, utilities, routine maintenance, and, if applicable, Homeowners Association (HOA) fees. Establishing this budget upfront not only guides your home search but also gives you the confidence to act quickly when you find the right property. It’s the foundation for making smart, stress-free decisions throughout the process.
STEP 2: GET PRE-APPROVED FOR A LOAN
Home buyers contact mortgage lenders because the full cost of a home is generally more than the typical buyer can afford or often want to put into the asset at one time. The process of buying a home, is a major emotional investment, you will want to maintain control and make practical decisions based on your budget and goals. The best approach? A conversation with an experienced, licensed, mortgage originator with whom you will work closely. Together you will determine the appropriate budget for your home acquisition and monthly expenses that leads to a pre- approval for you to share with a real estate agent. Many real estate agents now require a pre-approval letter, or a Mortgage Credit Approval Letter also known as a TBD commitment (Property to Be Determined), or proof of funds before taking you on as a
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