1. Determine why you want to buy a house.

Purchasing a home is a major decision that shouldn’t be taken lightly. If you’re not clear on exactly what you want out of homeownership.

Get started: Define your personal and financial goals. “Buyers should think about when they intend on moving and what they want in a home — amenities and ideal location.

2. Check your credit score.

Your credit score will help you determine your financing options; lenders use it (among other factors) to set the terms and rates of your loan. The higher your score, the lower the interest rate you will be eligible for — lower scores equate to more expensive mortgages.

Get started: You can get your credit report and score from each of the three major credit reporting agencies, Equifax, Experian and TransUnion, for free once a year. Your bank or credit card company might offer free access to your score or credit report, too. If you discover any discrepancies, contact each agency and report the error.

Consider how different credit score ranges impact your interest rate, monthly payments and total interest.

Pull your credit reports from each of the credit bureaus for free every 12 months at freecreditreport.com

3. Save for a down payment

To avoid having to pay private mortgage insurance, or PMI, you’ll need to put down at least 20 percent of the home’s purchase price for a down payment. Some lenders offer mortgages without PMI with lower down payments, but expect to pay a higher interest rate. Be sure to do your research: Many types of loans require a much lower minimum down payment, and there are many government programs to help cover down payment costs for qualified buyers. 

Get started: Research the requirements for the loan you want so you know exactly how much you’ll need to save for a down payment. If a friend, relative or employer has offered to provide a down payment gift, initiate a conversation early on to learn how much they plan to contribute and if there’s any shortfall you’ll need to cover — and secure a gift letter from them well in advance.

Consider options backed by the federal government. If you qualify for an FHA, VA or USDA loan, your down payment minimum will be considerably lower than 20 percent.

Conventional loans offered by Fannie Mae and Freddie Mac, meanwhile, require just 3 percent down.

Look into local and state down payment assistance programs to see if you’re eligible for a cost-saving loan or grant.

4. Create a housing budget

The purchase price and down payment aren’t the whole picture. Setting a realistic budget for your new home will help inform how much you can afford and what your all-in costs will be.

Get started: Carefully consider other expenses to determine what you can afford long-term. “Buyers tend to forget to factor in other costs, like homeowners association fees and maintenance. Just because you can afford a mortgage and a down payment doesn’t mean you can afford those long-term costs after you move.”

Figure out how much you can set aside for a down payment, plus a buffer fund for ongoing or unexpected maintenance costs.

Determine the maximum loan you qualify for. Getting preapproved can help (see Step 5).

Analyze your monthly budget to make sure you can handle mortgage payments along with your other day-to-day bills.

5. Shop for a mortgage

Getting preapproved for a mortgage gives you a firmer handle on how much you can afford, and it’s helpful when you make an offer on a house because it shows sellers you’re financially qualified. Once you’re ready to apply for official approval, you’re not obligated to stick with the same lender that issued your preapproval — compare the terms and rates offered by several companies.

Get started: Shop around with at least three lenders or a mortgage broker to increase your chances of getting a low interest rate. 

I recommend you to an experienced mortgage lenders who can walk you through all the options and overall costs.

If you’re a first-time homebuyer, inquire about what programs or incentives might be available to you.

6. Hire a real estate agent

An experienced real estate agent can save you time and money by helping you find the right home and negotiating with the seller on your behalf. Agents are licensed professionals who know their markets well and can guide you through your homebuying journey.

Talk with your real estate agent about your needs. The real estate agent  with knowledge of an area can tell if your budget is realistic or not, depending on the features you desire in a home.  “They can also point you to adjacent areas in your desired neighborhood or other types of considerations to help you find a house.”

7. Go house-hunting

Viewing listing photos online is helpful, but isn’t a substitute for visiting homes in person and getting to know the area and its amenities. In some cases, the right neighborhood might be even more important than the home itself.

Get started: Be specific with your agent about exactly what kinds of homes you want to see, so they can more effectively find options that meet your criteria. And keep an open mind: You may not be able to check off everything on your wish list, so prioritize must-haves over things that are nice to have but not crucial.

Explore neighborhoods you like to see what’s for sale, and attend open houses for homes that pique your interest.

Take notes on each property you visit — after a few, they can start to blend together in your mind.

Keep your schedule open so you can pounce when a great home is listed, especially in a competitive market.

8. Make an offer

Understanding how to make an attractive offer on a home can help increase the chance of it being accepted, putting you one step closer to getting those coveted keys. Confer with your agent and let their expertise lead the way.

Get started: Once you find “the one,” your real estate agent will help you prepare a complete offer package, including your offer price, your preapproval letter, proof of funds for a down payment (this helps in competitive markets) and terms or contingencies.

Think carefully about what contingency clauses to include in your contract. Common real estate contingencies can hinge on financing, appraisal, home inspection and more.

It’s not unusual for sellers to make a counteroffer. You can respond if you wish to keep negotiating, or reject it and move on.

Once an offer is accepted, you’ll sign a purchase agreement and pay an earnest money deposit, typically 1 to 2 percent of the purchase price. The funds will be held in escrow until closing.

9. Get a home inspection

A home inspection provides an overall picture of the property’s condition and any mechanical or structural issues it might have. This will help you determine how to proceed with the closing process: If major problems are found, you might want to ask the seller for repairs — or, if there’s an inspection contingency in the contract.

Get started: Your agent can recommend a home inspector.  Depending on your contract and what state you’re in, you’ll generally need to complete the inspection within 10 to 14 days of signing a purchase agreement.

10. Negotiate repairs and credits

Your home inspection may reveal a few issues, especially if it’s an older home. Major problems might need to be dealt with before your mortgage lender will finalize your loan, and it’s common to negotiate for the seller to either pay for the repair or offer the buyer a credit to cover the cost.

Get started: Enlist your agent’s help with this — the need for repairs is not unusual, but negotiation can be delicate work and is best left to the pros. They will work with the seller’s agent to come to an agreement about repairs or credits.

Hazardous problems like structural damage or improper electrical wiring could keep your lender from approving your loan, so take the solutions very seriously.

Some sellers won’t agree to extensive repairs. That’s why a home inspection contingency is important — it gives you a way out of the deal if you need it.

11. Secure your financing

A preapproval is not the same thing as official approval. Getting final loan approval means you need to keep your finances and credit in line during the underwriting phase. Don’t open new credit lines or make any major purchases until the paperwork is signed, and avoid changing jobs before closing too, if possible.

Get started: Respond promptly to requests or questions from the lender, and double-check your loan estimate to ensure all the details are correct. You may need to submit additional paperwork as your lender completes the process, such as bank statements, tax returns or additional proof of income, so keep your paperwork organized.

Being preapproved doesn’t mean you’re in the clear — that’s not the case until a lender has given your loan the final stamp of approval.

Keep your finances and credit in good shape from preapproval until closing day.

Avoid running up credit cards, taking out new loans or closing credit accounts too. These things can hurt your credit score or impact your debt-to-income ratio, which can imperil your final loan approval.

12. Do a final walk-through

A final walk-through is your opportunity to view the property one last time before it becomes yours. This is your last chance to address any outstanding issues before the house becomes your responsibility.

Get started: Your agent will schedule the walk-through for shortly before closing. Bring your home inspection checklist and other documents, like repair invoices and receipts, to ensure everything was done as agreed and that the home is move-in ready.

Ask your agent to attend with you — they can act as a witness and help answer any questions.

If any problems remain, have your agent communicate immediately with the seller and your lender. Your closing date might have to be delayed to ensure those issues are remedied first.

13. Close on your house

Once all contingencies have been met, you’re happy with the final walk-through and your lender has declared your loan “clear to close,” it’s finally time to make it official and close on your new home. After all of the paperwork has been signed, the home is officially yours and you’ll get the keys. Congratulations!

Get started: Three business days before your closing date, the lender will provide you with a closing disclosure that outlines your loan details, such as the monthly payment, loan type and term, interest rate, loan fees and how much money you must bring to closing. You will attend the closing along with your real estate agent, possibly the seller and their agent, and the closing agent, who may be a representative from the escrow or title company or a real estate attorney. This is also when you’ll wire your closing costs and down payment, depending on the escrow company’s procedures.

When you get your closing disclosure, compare it to your loan estimate to ensure the terms are the same. Ask any questions and correct any errors before you sign the paperwork.

On closing day, review all the documents you sign carefully, and ask for clarification on anything you don’t understand.

Make sure you’re given all house keys, entry codes and garage door openers before leaving the closing.

1,  Recent tax returns

2.  W-2 forms

3.  A letter from your employer stating employment status

If self-employed, business tax returns and profit and loss records

4.  Bank statements

5.  Retirement and brokerage account statements

6.  Student loan or car loan statements

7.  Credit card statements

8.  Asset titles, including your current home(s) and vehicle(s).

9.  History of residence (an informal list of your addresses for the past several years)

10.  Proof of any additional income aside from your annual earnings, such as alimony, Social Security, bonuses, etc.

12,  A gift letter, if applicable

13, Photo ID,

There's no one right time to buy a house, the best time is up to you.

The Lowest Home Prices Are Typically in January

When someone asks the question, “When is the best time to purchase a home?” there are multiple factors to consider. The first would be the average price of homes on the market. While median sales prices are more affordable between September and February, January has the lowest median sale prices overall. 

Is Winter a Good Time To Buy a House?

Winter can be an excellent time to buy a house as there’s usually less competition between buyers. Sellers may be more willing to negotiate to make a sale since buyer interest is lower than it is in the spring.

A potential downside for buyers is a relative need for more inventory as potential sellers may wait to list until the weather warms and there’s more competition.

Evaluating a home’s exterior grounds in a cold climate can also be challenging especially if it’s covered with snow or ice. At the same time, inspecting a property during the winter lets potential buyers determine the effectiveness of heating systems and the structure’s integrity.

Is Spring a Good Time To Buy a House?

Not usually. While spring is generally one of the best times for inventory, competition is also fiercer which can result in bidding wars and less room to negotiate with sellers.

Sellers who patiently waited through winter list their homes in the spring months when there are more potential buyers and it’s easier to show off curb appeal. The fair weather also makes it an opportune time to inspect exterior landscaping and tour multiple properties.

Is Summer a Good Time To Buy a House?

Late summer, specifically August, tends to be a better time to buy than early summer as there’s more likely to be a healthier balance between inventory and prices. In June and July, many housing markets still have strong demand and inventory levels carrying over from spring, giving sellers more advantages.

A potential downside includes less negotiation power than in the fall or winter for buyers not in a rush to buy. Touring homes may be challenging for working families during summer break if parents need to arrange child care. Completing a last-minute move can also be a hassle when changing school districts if you close as the new school year begins.

Is Fall a Good Time To Buy a House?

Fall is one of the best seasons to buy a home as buyers can typically negotiate a more desirable price before sellers take their home off the market prior to winter. There can also be fewer buyers as autumn progresses, although inventory is lower compared to spring or summer.

October can be the best month in the fall to buy a home as prices tend to be less competitive but inventory remains at a good level. Where severe weather is of concern, buying during this month still gives time to settle in before the brunt of winter arrives.