This answer will be different for every family based on income, budget, and the cost of the prospective home, but first and foremost, you need to have enough money saved up to cover the down payment. Down payments can range from 3.5 percent to 20 percent of the total cost, depending on mortgage interest rate, current financial situation, and credit score. Many experts recommend putting down 20 percent (if you’re able) because it affords you a bigger stake in the property immediately and will lower your monthly payment in the future.

Next, you need to consider closing costs, which include prepaid interest, inspection fees, and property taxes. These can end up adding up to 2-5 percent of the total cost of the home, so plan accordingly.

You should also factor in moving expenses, decor and furniture upgrades, monthly mortgage payments, and an emergency fund for any repair or maintenance issues that inevitably arise.

How do I find a house?

Look no further! Use our team of trustworthy, friendly, and fun experts to connect you with your dream home. We have direct insight and experience in this field, and we’ve got the inside scoop on the current homes that are on the market.

If you aren’t quite convinced yet and would rather look around a bit on your own first, we respect that! With our access to the Internet and technology today, there are so many resources at your disposal. Sites like Zillow, Realtor.com, and Redfin are helpful tools you can use to get started at home, in tandem with your knowledgeable realtor.

If you aren’t already approved with the lender or paying cash for your next home, the first step is to apply for and get approved for a loan to purchase the house. We can help you walk through the process of determining what you qualify for. Ideally, this step should take place before you shop for your home so you can walk into this journey with realistic goals and expectations.

As a buyer, it is 100% free to use a realtor. Relax and rest assured that there are no hidden costs, fees, or commissions that you have to pay. The seller of the home is the one responsible for footing the bill for both agents in a transaction. This is a predetermined amount negotiated between the listing agent and the seller, so don’t be scared, we don’t bite, or rob you of your hard-earned cash. You’ve got enough on your financial plate right now!

The quickest way to determine the type of home you can afford is to chat with a mortgage lender or banker. They’ll review your net income, debt owed, credit scores, and a few other items in the application process. If you aren’t sure who to consult, we have several fantastic lenders and bankers we’d love to recommend.

The first thing to figure out is when you want to ideally move into your new home and to plan your target timeline accordingly. Typically, it takes roughly 30 to 45 days from accepting your contract to taking ownership of your new home. If you are purchasing your home with cash, you could be closing on and moving into your new home in as little as two weeks, if inspections on the property have been completed and the title is ready.

Put simply, your credit score will affect the interest rate you get on your loan. Poor credit scores often lead to higher mortgage rates and increased closing costs, which can lead to a higher monthly payment. Obviously, the higher your credit score, the lower your rate will be.

Here’s a breakdown of what you can expect with each credit score range:

• 579 and lower – If you are approved for a mortgage with this low of a score, you will have a credit score as much as 2% higher than the current lowest rate.
• 580-619 – You can expect an interest rate as much as 1% higher than the lowest rate available.
• 620-679 – With a credit score in this range, your interest rate will be slightly affected. Rates could be .5% higher than someone with great credit will receive.
• 680-739 – This is the range most homebuyers are at, your rate will not be affected much at all in this range.
• 740 and higher – You will be offered the best rates mortgage companies have to offer with a score this high.

If your credit score is lower than you’d like, it’s not the end of the world. Try the following tips to increase your credit score quickly:

• Pay down your credit card balances. The higher the balance you have on your credit cards, the lower your credit score will be.
• “Pay for delete.” If you have any collections on your credit report, they are negatively impacting your credit score. Your best course of action to take is to contact the collection agencies directly and ask them if they will do a pay for delete, which is an agreement between you and the creditor that you’ll pay the balance and they’ll remove the account from your report.
• Become an authorized user.  If you have a family member or close friend with a credit card, they can add you as an authorized user on their account. The entire credit history of the account will be added to your credit report. FICO does consider authorized user accounts into their credit scoring algorithm, so this is a quick way to add up to 30 points to your FICO score.