When preparing yourself to buy a home, put a great deal of your focus in these areas:

  • Check your credit and improve your score, by paying off debt, making on time credit and loan payments, keeping your credit balance under 30 to 10% of your total credit line.
  • Lower your debt-to-income ratio, known as DTI, to below 43% to 50% maximum.  (FORMULA: Total Monthly Payments ÷ Total Monthly Income = DTI(%))
  • Do not purchase anything else, during your home buying process, that involves using your credit or putting yourself in additional debt, until after you have purchased the home.
  • Determine your home buying budget or how much you intend to pay for a property. 
  • Save up for a down payment, which could be anywhere between 3.5% to 20%, of the property purchase price.
  • Save up to cover home buying dues, fees and expenses.  This amount usually ranges anywhere between $1500 to $5000.
  • Research loan programs and find the loan program that better fit your resources, credentials, needs and wants.
  • Research and put together a list of Loan Officers and Real Estate Agents to choose from.