8 Steps to Buying a Home
Get your finances in order.
Before looking for a new home to buy, it’s important to get your finances in order and review what your credit report says about your financial history. If you haven’t looked at your credit report, be sure to review because errors are common.Also, save as much as you can towards a down payment. A down payment for a home is usually between 3% and 20% of the total cost of the home. The amount of the required down payment depends on your credit history, income, the cost of the home, and the type of mortgage you choose. Many first-time homebuyers put down 3 to 5% of the cost of the home, although there are options available that require less than 3%, so ask your lender if this is something you are interested in.
If your credit history has some blemishes, a housing counselor can help you figure out how to manage and pay off your debt and start saving for a down payment.