Budget beyond the down payment for closing costs (typically 2–5% of the purchase price), earnest money (1–3%), and an emergency fund for unexpected maintenance. 2. Explore Financial Assistance
You don't always need a 20% down payment. Explore programs that reduce upfront cash requirements: First-Time Homebuyer Checklist | What To Know i want to buy a home for the first time
Before touring homes, ensure your finances can support the long-term commitment of homeownership. Budget beyond the down payment for closing costs
Aim for a DTI ratio below 43% to improve loan eligibility. earnest money (1–3%)
Most experts recommend keeping total monthly housing costs—including mortgage, taxes, and insurance—below 30% of your gross monthly income .