Yes, You Can Own a Home — But You Need to Do These 5 Things

sherylsingletary

Aug 27

2 min read

Think homeownership is out of reach? You may be closer than you think.

You don't need perfect credit or a 20% down payment to start exploring your options. What you do need is a plan.

Here are 5 things every first-time homebuyer should do.

1. Check Your Credit

Your credit can affect your loan options and interest rate. Review your credit report for errors, late payments, collections, and high balances.

Tip: Before paying off or closing accounts, talk with a mortgage professional. The right strategy matters.

2. Know Your Budget

Look at your income, monthly debts, savings, and regular expenses.

Don't focus only on how much you can qualify for. Determine a monthly mortgage payment that you can comfortably afford.

3. Get Pre-Approved

Before touring homes, get pre-approved for financing. This helps you understand your purchasing power and which loan programs may work for you.

Depending on your qualifications, options may include FHA, Conventional, VA, or USDA financing, along with possible down-payment assistance programs.

4. Start Saving

Your down payment isn't the only expense to prepare for. You may also need funds for:

Earnest money
Home inspection
Appraisal
Closing costs
Moving expenses

And remember: 20% down isn't always required.

5. Build Your Homebuying Team

Buying your first home is easier when you have the right professionals guiding you.

A knowledgeable real estate professional and mortgage lender can help you understand your options, avoid costly mistakes, and guide you from pre-approval to closing day.