Back to Questions

What are the steps in buying a home? Step One

Step One

Understanding what you can afford

Your first step in buying a home is to fuly understand your finances

 

There are two primary yardsticks to determine if you’re financially prepared to buy a home: your annual income and how much debt vs. savings you have.

Financial experts recommend having 3 to 6 months of living expenses in savings before buying a home. However, how much debt you have, also known as your debt-to-income ratio, is a much more important number for lenders. It’s highly recommended you know what your credit score is before moving forward with the home buying process.