: Most lenders prefer a DTI ratio of 43% or lower .
Before browsing listings, you must solidify your financial foundation. process of buying a house for the first time
: Beyond a down payment, you’ll need to save for closing costs (typically 2–5% of the purchase price) and an emergency fund for unexpected repairs. Phase 2: Securing Financing : Most lenders prefer a DTI ratio of 43% or lower
: Start this at least six months before applying. A score of 620+ is typically needed for conventional loans, while 580+ can qualify you for low down payment FHA loans. Phase 2: Securing Financing : Start this at
: Aim to keep total housing costs (mortgage, taxes, insurance) below 30% of your gross monthly income.
Buying a house for the first time is a significant multi-phase process that typically spans . In 2026, the process remains structured around five main stages: preparation, securing financing, home shopping, making an offer, and closing. Phase 1: Financial Preparation
Establishing your buying power is a "power move" that shows sellers you are serious.