1) Pay Off Some Debts and Build an Emergency Fund

Even if your monthly house payment will be similar or lower
than your current rent amount, as a homeowner, you’ll have some maintenance and upkeep costs. It’s best to set aside some emergency fund for at least three months for mortgage payments and expenses, also pay off some loans or debts to lower the debt-to-income ratio before getting pre-approved.

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2) Save for Down Payment & Closing Costs

You can purchase a home with as little as 3.5% down payment with FHA loans, however, there will be a private mortgage insurance (PMI), which costs 1% of the total loan value that
will be added to your monthly payment. You will have
closing costs which costs anywhere between 2-5% of of the purchase price.

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3) Get Pre-approved for a Loan

Pre-approval letter shows sellers that you’re a serious buyer, which is a great way for first-time home buyers to get ahead in a competitive market. This also allows you to find out
how much loan you’re qualified for and what price point
you can afford.

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4) Find out How Much House You Can Afford 

Knowing your price point saves you so much time shopping directly in your qualified price range. It will streamline which neighborhoods you can afford to buy.

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5) Team Up with a Trustworthy Realtor®

It is to the buyer’s advantage to have a responsible agent represent them in a sale transaction. Buyer doesn’t pay for
the agent’s commission, it comes from the seller’s side. Having your own buyer’s representation puts you in a much better position, guiding you through the cumbersome transaction process, legal paperwork and negotiate in your best interests with the seller. It's a Win Win for you!

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6) Research the Neighborhoods in your Price Point

Visit the neighborhood at different times and days to check for traffic conditions and noise levels and to see if people
are comfortable being outdoors.

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7) Tour Open Houses and Get Familiar with the Inventory for Comparison

Once you have narrowed down the neighborhoods, visit a
few open houses. Tour the homes that are for sale—even

if they’re not a perfect fit for you—is a great way to learn more about the area. When you do eventually find a house you love, you’ll know how your place compares to better or worse homes in that neighborhood.

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8) ​ Write a Strong & Competitive Offer

Discuss with your agent to submit a competitive offer within
your budget to knock out the competition. Your agent should come up with a strategy to make your offer look attractive. A personalized letter might help your offer stand out among other competitors.

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9) Once Offer is Accepted, Enter Escrow

Once the seller accepts your offer, the escrow process will begin. This is a crucial period, it’s best not to make

any car, furniture or any large purchases, as your lender
will be approving your loan and the underwriting department will be analyzing your credit and income-to-debt ratio.
Wait after closing to make any unnecessary purchases.

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10) Prepare for the Closing Costs, Get Ready to Close &
Move In!

Your agent should be guiding you from the home inspection to the final walk through. Make sure to review all your reports and seller's disclosures. Once everything looks good, Escrow will proceed to close, you'll receive your keys!

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