Before looking at listings, you must establish a realistic budget that accounts for both upfront and ongoing costs.
: Lenders often use the 28/36 rule , where housing costs should not exceed 28% of gross monthly income, and total debt should not exceed 36% Rocket Mortgage .
: Budget an additional 2% to 6% of the home price for closing costs, which include appraisal, title, and attorney fees Rocket Mortgage. 2. The Pre-Approval Process
: Compare offers from at least three different lenders to ensure you get the best terms; even a fraction of a percent can save thousands over the life of a loan Bankrate . 3. Home Search & Evaluation
: Always hire a professional inspector to check for structural issues, electrical safety, plumbing, and roof condition Travelers .
After an offer is accepted, the "due diligence" phase protects you from buying a problematic property.