How To Plan For Buying A First Home Apr 2026

: Never drain your entire savings for a down payment. Experts from City National Bank suggest keeping 3 to 6 months of living expenses in reserve after closing to handle unexpected repairs.

: While 20% avoids private mortgage insurance (PMI), many buyers qualify for loans with as little as 3% or 3.5% down. how to plan for buying a first home

: Once under contract, do not open new credit cards, take out car loans, or make large purchases. These actions can change your debt-to-income ratio and cause your mortgage approval to be rescinded. Common Mistakes to Avoid : Never drain your entire savings for a down payment

: Do not settle for the first quote. Comparing at least 3 to 5 lenders (banks, credit unions, and online brokers) can save you thousands in interest over the life of the loan. : Once under contract, do not open new

Buying your first home is likely one of the largest financial decisions you will ever make. Successful homeownership requires extensive preparation—often starting 6 to 12 months before you even attend an open house. Phase 1: The Financial Foundation (12–6 Months Out)

: A pre-approval letter shows sellers you are a serious buyer and defines your exact price range.