The REAL First Step in Buying a House (and It's Not Looking at Homes)

Everything I Wish Someone Had Explained Before I Bought My First Home

When most people think about buying a house, they picture listings, showings, neighborhoods, and inspections. But here’s the truth: most first-time buyers start way too far into the process. The real beginning of homeownership isn’t choosing a house. It’s understanding your financial readiness long before you ever talk to a lender. If no one has ever explained this part of the journey in a simple, straightforward way, you’re exactly where you need to be.

As a real estate broker with credit, tax, and legal specialist experience, I help buyers get “home-ready” the smart way — not the stressful way.

Below is exactly where you should start.

1. Understand What “Financially Ready” Really Means

Most people think readiness means: “I have a job, and I’m tired of renting.”But lenders look at something very different.

Being financially ready means:

• Your credit is stable

• Your income is consistent

• Your debts are manageable

• You have enough saved for upfront costs

You don’t have to be perfect — you just need to be prepared.

If you feel unsure about where you stand, that’s completely normal. Most first-time buyers do.

2. Know What Credit Looks Like From a Lender’s Eyes

Credit can feel confusing, so here’s the simple breakdown:

• 740+ → Best rates

• 700–739 → Great

• 660–699 → Good / solid approval range

• 620–659 → Possible, but expect higher rates

• Below 620 → Still options, but you may need a plan first

The good news? Credit is one of the easiest things to improve with the right strategy.

If you don’t know your score, start there. And don’t panic if it’s lower than you expected — that part is fixable.

3. How Much Do You Actually Need Saved?

Most people think they need 20% down. Let me say this clearly:

You do NOT need 20% down to buy a home.

Here’s the real breakdown:

• FHA: 3.5% down

• Conventional: 3–5% down

• VA: 0% down (eligible buyers)

• Programs: Some offer grants or closing-cost assistance

Besides the down payment, plan for:

• Closing costs: 2–4%

• Earnest money (refundable with certain conditions)

• Inspection/appraisal fees

• A small emergency cushion

Think of savings as your foundation — not your barrier.

4. Understand Your Debt-to-Income (DTI) — Without the Jargon

Let’s make this simple:

DTI = monthly debt payments ÷ monthly income

Lenders like to see:

• 43% or below (ideal)

• Up to 50% may still work with a strong profile

Your DTI includes:

• Car payments

• Student loans

• Credit cards

• Personal loans

What doesn’t it include?

✔ Rent✔ Utilities✔ Phone bill✔ Insurance

If your DTI is too high, we create a plan — often faster than you think.

5. Build Your “Home-Readiness Snapshot”

Before contacting a lender or browsing homes, you should know:

• Your credit score

• Your income range

• Your monthly debts

• Roughly how much you can comfortably afford

• What you have saved for upfront costs

This gives you confidence, clarity, and fewer surprises.

6. What Not to Do First

Avoid these common mistakes:

✘ Browsing homes you can’t buy yet✘ Applying with multiple lenders “just to see” ✘ Letting anyone pull your credit too early✘ Guessing at your numbers✘ Comparing yourself to others

You’re building your timeline — not social media’s.

7. You Don’t Have to Figure This Out Alone

Here’s something most people don’t realize:

A good real estate professional doesn’t just help with showings — they help with preparation.

That’s exactly why I created my Home Readiness Program — to help you navigate credit, budgeting, tax considerations, and financial prep long before you choose a home.

Because buying a home should feel empowering, not overwhelming.

Final Thought

If you’re reading this because you want to become a homeowner someday, you’re already ahead of most people. You don’t need perfect credit, a huge down payment, or every detail figured out — you just need the right steps, in the right order. And when you’re ready, I’m here to help you take them.