What To Do When Buying Your First House [NEW]

Before looking at listings, you must understand your borrowing power and clean up your credit.

: A good agent helps you navigate negotiations, handle paperwork, and find up-and-coming neighborhoods.

Once you have your pre-approval letter, you can start hunting with a clear "needs vs. wants" list. 10 First-Time Homebuyer Mistakes To Avoid - Bankrate what to do when buying your first house

: Start collecting your last two years of tax returns, W-2s, and recent bank statements. 3. The Search and Offer Phase

: Use the 28/36 rule —housing costs shouldn't exceed 28% of your gross monthly income, and total debt shouldn't exceed 36%. Before looking at listings, you must understand your

: You'llBudget 2% to 5% of the purchase price for closing costs .

Sellers often won't consider an offer unless you have professional backing and proof of funds. wants" list

: Experts at Bankrate advise against draining your savings for a down payment; you need a "cash cushion" for unexpected repairs like a broken furnace. 2. Assemble Your Team and Get Approved