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Home Buying 101
- Calculate how much house you can afford
- Look at your current debts and income and consider how much money you can reasonably afford to spend each month on a mortgage
- Use Rocket Mortgage’s® Home Affordability Calculator to get a rough idea of how much of a mortgage you can afford.
- Save for a down payment and Closing Costs and Credits
- Down payment could be as low as 3%, but national average is 12%. Avoid paying a higher borrowing rate by aiming to save 20%
- There are many variables that go into determining how much you’ll pay for closing costs, but averages around 2% – 5% of the purchase price
- Track sale prices and inventory in your market
- It is usually a good idea to browse your market 4-6 months before taking the plunge to see what houses are selling for and what the inventory trend is
- Make sure to find out if you live in a disclosed or non-disclosed state
- Get pre-approved for a mortgage
- Contact your local bank or any mortgage lender for a pre-approval. You can still shop for rates later on.
- Find and negotiate with the right real estate agent
- Find an agent that knows the area well or have a wealth of experience
- Negotiate your 💰Agent’s Fees
- Begin house hunting
- Go to open houses or if you are using an agent, email them all of your interested properties
- Make an offer on a house using your agent or 🚫The Agent Free Guide
- Lock in a mortgage rate
- Get a home inspection
- Get a home appraisal
- Ask for repairs or credits
- Do a final walkthrough
- Close on your new home