How to Buy a House: 11 Tips in 3 Big Steps

Get a Handle on Your Finances

1. Check Your Own Credit

• Your credit score will affect your mortgage interest rate; try to improve it as much as you can.

2. Research Sales Price in Your Area

• Talk to an expert about sales prices and other costs of homeownership, like homeowners’ insurance and common maintenance needs.

3. Nail Down the Down Payment

• You can bring less than 20% down to the table for different loans, but you’ll have to pay private mortgage insurance (PMI).

4. Consider All the Costs

• You’ll also be paying property taxes and insurance premiums; you may also have to pay for flood insurance, closing costs, moving, and more.

5. Figure Out What You Can Afford

• Make sure you’re not getting in over your head; ideally, your entire monthly mortgage payment should comprise no more than 1/3 of your take-home income. 

Start Searching

6. Understand What You Want

• Expect to be there for at least a couple of years, but probably closer to five or even ten, and try to accommodate for your future needs, too.

7. Get to Know Your Deal Breakers

• A deal breaker is a feature of the home that you realistically can’t fix.

8. Search Accordingly

• Once you understand your must-haves and your deal breakers, your agent can set up a personalized alert anytime a home meets your exact criteria.

Offer Smart and Close Strong

9. Think Competitive but Reasonable

• Make a competitive offer, and consider using concessions to sweeten the deal. 

10. Hire the Inspector

• Come to the inspection and listen carefully to any concern.
• Ask questions about common problems.
• Consider what to ask the seller to fix and what you feel OK tackling yourself.

11. Think Beyond the Close

• Keep tabs on the market so you know how your taxes and insurance could increase, and maintain your home so it remains a good investment.