: Lenders often use the 28/36 rule , where housing costs should not exceed 28% of gross monthly income, and total debt should not exceed 36% Rocket Mortgage .
: Budget an additional 2% to 6% of the home price for closing costs, which include appraisal, title, and attorney fees Rocket Mortgage. 2. The Pre-Approval Process what to know when buying a home
: Evaluate neighborhood safety, school quality, commute times, and proximity to grocery stores or parks HAR.com . : Lenders often use the 28/36 rule ,
: Compare offers from at least three different lenders to ensure you get the best terms; even a fraction of a percent can save thousands over the life of a loan Bankrate . 3. Home Search & Evaluation Home Search & Evaluation : Avoid financing a
: Avoid financing a new car or using credit for furniture before closing, as new debt can disqualify your mortgage Bankrate.
: Distinguish between "must-haves" (location, number of bedrooms) and "nice-to-haves" (granite countertops, pool) to avoid emotional overspending NerdWallet.
: Lenders require an appraisal to ensure the home’s value matches the loan amount. If it comes in low, you may need to renegotiate or pay the difference in cash Investopedia.