Home: What To Do To Prepare To Buy Your First

: W-2s from the last two years and recent pay stubs. Tax Returns : Federal returns for the past two years.

: This is the first thing lenders review. A higher score often leads to lower interest rates.

Before looking at houses, you must understand what you can actually afford. what to do to prepare to buy your first home

: Plan for a down payment (ideally 20% to avoid private mortgage insurance) and closing costs, which typically range from 1.5% to 5% of the purchase price.

: Don't just rely on what a bank approves. Use rules like the 30/30/3 rule (30% of gross income for mortgage, 30% of savings for a down payment, and a home price no more than 3x your annual income) to stay safe. : W-2s from the last two years and recent pay stubs

: Follow the 3-3-3 rule —have three months of living expenses saved and three months of mortgage payments in reserve. 2. Do Your Homework on the Market

Gather these documents early to speed up the pre-approval process: A higher score often leads to lower interest rates

: Focus on commute times, school quality (which impacts resale value), and local amenities like parks or grocery stores.