Buying a Home: What Should You Do First?

Before you begin touring homes, take time to understand your financial position, priorities, and timeline.

Start by answering these questions:

• What monthly housing payment can you comfortably afford?

• How much money do you have available for a down payment, closing costs, and reserves?

• Have you reviewed your mortgage options with qualified lenders?

• Which locations and property types fit your needs?

• Do you understand the potential costs of property taxes, insurance, maintenance, and homeowners association fees?

• What professional assistance might you need before making an offer?

Your purchase budget should account for more than the home's asking price. Mortgage payments, property taxes, homeowners insurance, maintenance, utilities, and other expenses can affect the true cost of ownership.

The U.S. Department of Housing and Urban Development provides additional information about affordability, financing, home inspections, and the home-buying process.

Helpful resource: HUD — Buying a Home