Thinking About Buying a Home? Start Here.

Buying a home is exciting, but knowing where to begin can sometimes feel overwhelming. A little preparation—and the right guidance—can make the process much easier to understand.

Whether you're planning to purchase soon or simply wondering what may be possible, understanding your finances and financing options is a helpful first step.

1. Start With Your Financial Picture

Before falling in love with a house, take some time to look at your overall finances.

Your income, existing monthly obligations, credit, available funds for a down payment and closing costs, and the type of financing you choose can all affect what may be affordable for you. CFPB also recommends considering expenses beyond the mortgage itself, including property taxes, homeowners insurance, utilities, maintenance and applicable HOA fees.

And remember: the highest purchase price you might qualify for isn't necessarily the amount you'll feel comfortable spending each month.

A comfortable payment matters just as much as a beautiful house.

2. Don't Assume You Need a 20% Down Payment

One of the questions homebuyers frequently have is: “How much do I need to put down?”

There isn't one answer that works for everyone. Down-payment requirements and other costs vary depending on the loan program and your individual circumstances.

A larger down payment can affect the amount you borrow and your monthly costs, but putting every dollar you've saved into the down payment isn't necessarily the right strategy either. CFPB recommends leaving yourself a financial cushion and accounting for other home-buying and ownership expenses.

This is one of the reasons it's helpful to explore your financing options before deciding what your home-buying budget should be.

3. Understand Your Options Before You Start Shopping

There are different types of mortgage programs, loan terms and structures available.

The right fit depends on much more than simply finding the lowest advertised interest rate.

Consider things such as:

• Your expected monthly payment

• Down payment

• Cash needed at closing

• Loan term

• Interest rate

• Mortgage insurance, when applicable

• Closing costs and lender credits

• How long you expect to own the home

  
  

CFPB recommends comparing these kinds of factors when evaluating mortgage options rather than focusing on a single number.

This is where having someone explain the differences can be especially valuable.

4. Get Prepared Before You Find “The One”

Once you're ready to move forward, gathering your financial information early can make the next steps easier.

Depending on your situation and loan program, your lender may need documentation relating to your income, assets, employment, debts and other financial information.

Preparing before you're under the pressure of a purchase contract gives you time to ask questions and understand what may be needed.

The CFPB specifically recommends getting your finances in order, checking your credit, establishing a home-price budget and preparing your loan-application paperwork before shopping for a mortgage.

5. Look at the Whole Cost of Homeownership

A mortgage payment isn't necessarily the only monthly expense associated with owning a home.

Your total housing costs may include:

Principal + Interest + Property Taxes + Homeowners Insurance + Mortgage Insurance (if applicable) + HOA Fees (if applicable)

You'll also want room in your budget for maintenance and unexpected repairs.

That's why Sandy can help you look beyond simply “How much can I qualify for?” and understand the bigger financing picture.

6. Ask Questions—Lots of Them

Mortgage terminology can sound like its own language sometimes.

Points. Credits. Escrow. APR. Rate locks. Loan Estimates.

You don't need to become a mortgage expert before purchasing a home.

You should, however, feel comfortable asking questions until you understand what you're considering.

When you receive Loan Estimates, CFPB recommends carefully reviewing the loan amount, interest rate, monthly payment, mortgage insurance when applicable, upfront loan costs, lender credits and cash needed to close.

That's one of the most important parts of Sandy's approach: helping clients understand their choices rather than expecting them to figure everything out themselves.

You Don't Have to Have Everything Figured Out

You don't need to know exactly which mortgage you want before having a conversation.

You don't even necessarily need to be ready to purchase immediately.

Sometimes the best first step is simply finding out where you stand today and what you may need to do next.

For decades, Sandy Biondo has helped clients navigate mortgage and real estate financing with personal service and clear guidance.

Whether you're ready to begin or simply have questions, Sandy would be happy to talk through your options.