Financial Obligations

Before your home searching process begins, you should first begin to ensure that your finances are in order.  This includes paying off debt, building & increasing your credit score, and most importantly, saving enough money for a down payment on a house.

Typical conventional home loans require a 20% down payment; however, you can purchase a home with other loan vehicles for a downpayment as low as 3.5%.  Please keep in mind that most loan vehicles that do not require a 20% downpayment will require the borrower to pay Private Mortgage Insurance (PMI).

After completing these steps, it is now time for you to speak with a lender and to get Pre-Approved for a home loan.

Why is it important to get Pre-Approved for a loan before starting your home buying process? Being Pre-Approved shows that you are serious about buying a home and can begin the home purchasing process immediately.  Additionally, it keeps the buyer focused on homes within the price range of their Pre-Approval loan amount.

Please keep in mind that in addition to the downpayment, other cost that will have to be factored into buying a home include:

  • Closing Cost
  • Inspections (Home, Termite, Radon, etc)
  • Repairs (if not covered by the seller)
  • Contingencies
  • Other Fees