Buying a House 101

How to Prepare to Purchase a House

1. Know Your Budget

Before looking at homes, understand:

•   Monthly income
•   Monthly expenses
•   Debt obligations
•   What monthly payment feels comfortable

Remember: Your payment may include:

•   Mortgage
•   Property taxes
•   Homeowners insurance vs
•   HOA fees (if applicable)

2. Check Your Credit Score

Your credit can impact:

• Loan approval

•   Interest rate
•   Monthly payment

Ways to improve credit:

•   Pay on time
•   Keep balances low
•   Avoid opening new accounts before buying
• Review credit reports for errors

3. Start Saving

Typical costs may include:

•   Earnest money
•   Down payment
•   Closing costs
•   Moving expenses
•   Emergency home fund

Saving ideas:

Food budget with budget meals

Decorate on a budget

Automatic transfers

Reduce subscriptions

Save tax refunds or bonuses

4. Build a Home

Buying Fund

Create separate savings categories:

• Down Payment
• Closing Costs
• Moving Expenses
• Repairs/Furniture

5. Get Pre-Approved

A pre-approval helps you:

•   Understand your price range
•   Shop confidently
•   Strengthen your offer
•   Move faster when you find the right home

6. Gather Your Documents

Common items lenders request:

•   Driver's license
•   Pay stubs
•   W-2s or tax returns
•   Bank statements
•   Employment information

7. Understand Extra

Costs

Many buyers forget:

•   Utilities
•   Maintenance
•   Lawn care
•   Home repairs
•   Pest control
•   HOA dues

8. Build Your Team

Helpful professionals:

• Real Estate Referral

Agent

•   Mortgage lender
•   Insurance agent
•   Closing attorney/title company
•   Home inspector

9. Decide What You Need vs. Want

Create 3 lists:

Must Have

Would Like

Dream Features

10. Ask Questions

Examples:

•   How old is the roof?
•   Average utility costs?
•   Flood zone?
•   HOA rules?
•   Estimated maintenance?

Here's why saving matters:

1. Down Payment

Saving can help reduce how much you borrow.

2. Closing Costs

There are often expenses involved in finalizing a purchase.

1. Moving Expenses Boxes, movers, utility setup, furniture, and small purchases add up.
2.   Emergency Cushion Owning a home means unexpected repairs can happen.
3.   Monthly Confidence

Savings can make the transition into homeownership feel more manageable.

6. More Choices

Preparation can create flexibility when opportunities appear.

7. Peace of Mind

Buying a home should feel exciting—not overwhelming.

Easy places to start: v Save automatically

-Track spending for one month

-Reduce impulse purchases

-Set a small weekly savings goal

Remember:

You don't have to save everything overnight.

Small, consistent steps can build momentum over time.

1.   Track spending for 30 days
2.   Meal plan before shopping
3.   Use a 24-hour wait before non-essential purchases
4.   Cancel unused subscriptions
5.   Automate savings
6.   Redirect raises, bonuses, or side income
7. Reduce impulse spending

Example:

Saving $25-$50 weekly can build momentum over time.