Buying your first home is an exciting milestone, but it can also feel overwhelming. “In today’s competitive marketplace, many houses are selling as soon as they become available,” said Erin Carlotto, AVP Mortgage Origination Officer at Greylock Federal Credit Union. “But with the right preparation, you can give yourself an advantage over other home shoppers and navigate this journey with confidence.”

Whether you’re in the market for a house today or planning to buy in the coming months, here is a step-by-step guide to help you get started.

Assess Your Financial Health

Before diving into the home-buying process, take a close look at your finances. Review your credit score, as it plays a crucial role in securing a mortgage. “Your credit score will determine not only whether you can get a mortgage, but may also affect what rate you will have to pay,” Carlotto said.

While many financial institutions will change their mortgage rate based on one’s credit score, Carlotto noted that Greylock does not. “All approved borrowers at Greylock receive the same rate, whether they have an 800 or a 640 credit score.”

She also suggested that you aim to pay down any outstanding debts and avoid making large purchases in the months leading up to your home search.

Set a Budget

Determine how much you can afford to spend on a home. Consider your monthly income, expenses, and how much you can comfortably allocate toward a mortgage payment. “A lot of first-time homebuyers assume that if their mortgage matches their rent, it will be an even swap,” Carlotto said. “But this doesn’t factor in additional costs such as property taxes, insurance, and maintenance. You’ll want to include these in your budget calculations.”

Save for a Down Payment

Start saving for a down payment early. While the traditional 20% down payment is ideal, many lenders offer options with lower down payments. However, keep in mind that a larger down payment can reduce your monthly mortgage payments and potentially eliminate the need for private mortgage insurance (PMI).

Get Pre-Approved for a Mortgage

“Getting pre-approved for a mortgage gives you a clear picture of how much you can borrow and shows sellers that you’re a serious buyer,” Carlotto said. Gather the necessary documentation, such as proof of income, tax returns, and bank statements. Some institutions charge a fee for pre-approval, but it is free at Greylock. Plus, Greylock offers a variety of mortgage options to better meet your specific needs.

Find the Right Real Estate Agent

A knowledgeable real estate agent can be an invaluable resource. They can help you find homes that meet your criteria, negotiate offers, and guide you through the closing process. Look for an agent with experience in your desired area and a track record of successful transactions.

Start House Hunting

With your pre-approval in hand and a trusted agent by your side, you’re ready to start house hunting. Carlotto recommends making a list of must-haves and nice-to-haves to help narrow down your options. Attend open houses and schedule private showings to find your perfect home.

Make an Offer and Close the Deal

Once you’ve found your dream home, work with your agent to make a competitive offer. Be prepared for negotiations and, once your offer is accepted, complete the necessary inspections and paperwork. Finally, close the deal and get ready to move into your new home.

By following these steps, you’ll be well on your way to becoming a proud homeowner. Happy house hunting!

For more great home buying tips, visit https://greylock.banzai.org/wellness/collections/buying-a-house