Steps to Buying

Buying a House

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Home Buying

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Mortgage Payments

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Steps To Buying

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Financial Help & References

Prep Steps to Buy a Home

  1. Get to Know Your Credit Report. Be aware of items on your credit report and what factors are used to determine your credit score: 35% payment history, 15% Length of History, 30% Amount Owed, 10% New Credit, 10% Type of credit used.
  2. Gather Documentation. Create a file with important documents such as W-2 forms, tax returns, employment, and bank statements.
  3. Be Realistic About What You Can Afford. Purchasing a home is an expensive venture. Do a thorough budget analysis to determine the right amount of home for your situation.
  4. Review your budget and housing options. Consider a range that won’t break your monthly budget. It’s best to start small and over time you can move up.
  5. Research monthly costs and hidden costs. Consider ALL costs when determining what you can afford. Don’t forget to consider utilities, home maintenance, and home owners’ association dues, as well as closing costs, homeowners insurance, and property taxes.
  6. Save for a higher down payment. This combined with shopping around for the best interest rates will keep your payment lower. 
  7. Get Preapproved. Once you have a down payment, it’s time to get a preapproval. You should do this before you start shopping for a home so you’ll know what your realistic budget looks like.
  8. Research Neighborhoods. Drive through your desired location at different times to see the neighborhood from different views (day/night, rush hour and/or lazy Sunday mornings).
  9. Bring a Trusted Friend or Family Member to House Hunt. Buying a home can be an emotional purchase. Be sure you are with someone who will help you think through the purchase from all considerations.
  10. Work with the right broker or realtor.  Interview a few Purse Strings Approved Professionals to see how they will work with you on your behalf. Make a list of what you need and want in a home that you can refer back to when looking.  

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Did You Know

Your credit score has nothing to do with your age, race, income, or job title. It is calculated based on your payment history, amount owed, length of history, and the type of credit you have.