The home buying process can sometimes seem extremely difficult from the outside, and this perception may deter potential buyers. A critical factor in creating generational wealth is homeownership. A study found that having a homeowning parent increases a young adult’s likelihood of being a homeowner by 7 to 8 percentage points.
Start researching. Get an idea of how much you can afford and what neighborhoods are best for you. (Redfin and Homesnap)
Maintain a steady income; In most cases, lenders like to see 24 months of steady income
Save money; keep in mind you will need a minimum of 3.5% downpayment for an FHA Loan, plus closing cost.
Pay bills on time; payment history is 35% of your credit score. Lenders like to see a minimum of 12 months of on-time payments before approving a mortgage loan.
Establish a good credit score; You can get approved with a 580 credit score, but the best interest rates come with a 620/640 or better credit score.
Find an agent. Interview a few agents to see whose style matches yours.
Speak with a lender: Interview a few different lenders also. Good lenders will analyze your financial situation and help you with a roadmap to approval.
Seek preapproval for loans; before you can officially go home shopping, you will need a preapproval letter
Research First-time home buying programs: based on your income, occupation, and other factors, some programs will give you up to $50,000 for downpayment/closing.
