The Financials
Step 4: Establish a Budget
Determine your downpayment amount and start process so that the money is accessible and tied up elsewhere
Saving up 20% of a home’s purchase price as a down payment is often suggested, but can be hard to do in high-priced markets (If saving up 20% isn’t feasible, work with your lender to create the best plan for your needs)
Consider other costs associated with moving (ie. closing costs, moving costs, renovation costs, new furniture, etc)
Remember that just because you’re approved for a certain amount doesn’t mean that you have to spend that amount. Work with your lender and agent to establish a price point and monthly payment that you will be comfortable with.
Step 5: Get Pre-Approved for a Mortgage
Ask the lender if you qualify for any special loans, such as VA or FHA.
Get Pre-Approved; this gives you, your agent, and the lender an estimate of how much you can afford based off of your credit score and past financial documents
Work with your lender and real estate agent to determine if your file should be underwritten before submitting any offers. This will help to avoid any potential disappointments or delays during the transaction