Where do I start when looking to buy a home?

When interested in looking for homes, the questions should be what do I qualify for? How is my credit score? Can I afford a house? What is the difference between owning a home and renting?

1. What do I qualify for?

Before you start house hunting, it’s important to know how much a lender is willing to loan you. This is called pre-qualification or pre-approval. It depends on factors like:

• Your income

• Your debt-to-income ratio

• Employment history

• Credit score
  Talking to a mortgage lender will give you a realistic price range to shop in, helping you avoid wasting time on homes outside your budget.

2. How is my credit score?

Your credit score plays a big role in the kind of mortgage you can get—and the interest rate you’ll pay.

• A higher score (typically 700 and above) often qualifies you for better loan terms.

• Lower scores may still qualify you, but you might need to pay more upfront or accept a higher interest rate.

Tip: Get a free credit report before house hunting and check for errors or areas to improve.

3. Can I afford a house?

Owning a home includes more than just a mortgage payment. You’ll also need to budget for:

• Property taxes

• Homeowners insurance

• HOA fees (if applicable)

• Maintenance and repairs

• Utilities

Use a mortgage calculator to estimate your total monthly cost and compare it with your current rent and income.

4. What is the difference between owning and renting?