Guide To Buying Your First House May 2026

These are the fees required to finalize the mortgage, typically ranging from 2% to 5% of the loan amount. You must save for these in addition to your down payment.

Backed by the Federal Housing Administration, great for buyers with lower credit scores and smaller down payments (as low as 3.5%). guide to buying your first house

Be honest about what you can afford. Lenders use the "debt-to-income" (DTI) ratio to qualify you for a loan, usually looking for a DTI of 43% or less. However, just because a bank says you can borrow a certain amount doesn’t mean you should. Calculate your monthly housing costs, including: Principal and interest Property taxes Homeowners insurance Homeowners Association (HOA) fees (if applicable) Utilities and maintenance costs Phase 2: Getting Mortgage Pre-Approval These are the fees required to finalize the