: While 20% avoids private mortgage insurance (PMI), many first-time buyers put down as little as 3%–3.5% .
: Calculate your monthly take-home pay and subtract all current debts. A common rule is to keep total housing costs (principal, interest, taxes, and insurance) below 30%–43% of your gross monthly income. Save for Upfront Costs :
Before looking at houses, you must determine your actual budget, which includes both upfront and recurring costs.
: Lenders typically look for a credit score of at least 620 for conventional loans, though scores of 740+ qualify for the best interest rates.