Review your credit score and credit report. Aim for 620+ for conventional loans, 580+ for FHA. Dispute any errors on your report and pay down high-balance credit cards to improve your score.

Calculate your debt-to-income ratio (DTI). Add up all monthly debt payments and divide by your gross monthly income. Most lenders want this below 43%, though lower is better.

Build an emergency fund. Beyond your down payment and closing costs, you should have 3-6 months of expenses saved. Lenders want to see cash reserves.

Get your employment documentation ready. You'll need 2 years of W-2s, recent pay stubs, and tax returns. If you're self-employed, you'll need 2 years of business and personal tax returns.

The purchase price is just the beginning. Factor in property taxes (1-2% of home value annually), homeowners insurance, HOA fees, maintenance (1% of home value annually), and utilities.

Use the 28/36 rule as a guideline: spend no more than 28% of gross income on housing costs, and no more than 36% on total debt payments.

Don't forget closing costs, typically 2-5% of the loan amount. These include appraisal, title insurance, origination fees, and more. Some programs allow seller contributions toward closing costs.

Consider the total cost of ownership, not just the monthly payment. A lower rate on a 30-year term costs more in total interest than a higher payment on a 15-year term.

Conventional loans require as little as 3% down with PMI. FHA loans need 3.5%. VA and USDA loans offer 0% down for eligible borrowers.

Research down payment assistance programs in your state and county. Many offer grants or forgivable loans that don't need to be repaid.

Gift funds from family are accepted on most loan types. Your lender will need a gift letter confirming the funds are a gift, not a loan.

Consider setting up automatic transfers to a dedicated savings account. Even small, consistent contributions add up over time.

Pre-approval is different from pre-qualification. Pre-approval involves a full review of your financial documents and a credit check, resulting in a conditional commitment from the lender.

A pre-approval letter tells sellers you're a serious buyer with verified financing. In competitive markets, offers without pre-approval are often rejected.

Pre-approval typically lasts 60-90 days. If your home search takes longer, you may need to update your documentation and get re-approved.

Getting pre-approved doesn't obligate you to use that lender. You can still shop around for better rates and terms before committing.

Make a list of must-haves versus nice-to-haves. Prioritize location, school districts, commute, and structural features over cosmetic details that can be changed.

Work with a buyer's agent who knows your target area. Their commission is typically paid by the seller, so there's no direct cost to you.

Attend open houses and schedule private showings. Visit properties at different times of day to check noise levels, traffic, and natural light.

When you find the right home, work with your agent to craft a competitive offer. Your pre-approval letter will strengthen your position.

Once your offer is accepted, your lender will order an appraisal to verify the property's value. If the appraisal comes in low, you may need to renegotiate the price.

Schedule a home inspection. While not required by lenders, an inspection can reveal issues that could cost thousands to repair. Use findings to negotiate repairs or credits.

Review your Closing Disclosure carefully at least 3 days before closing. Compare it to your Loan Estimate to ensure no unexpected changes in rates or fees.

At closing, you'll sign the final documents, pay closing costs, and receive the keys to your new home. Bring a government-issued photo ID and a cashier's check or arrange a wire transfer.

Set up automatic mortgage payments to avoid late fees and protect your credit score. Consider bi-weekly payments to pay off your loan faster and save on interest.

Keep all closing documents and your home warranty information in a safe place. You'll need them for tax deductions and any future refinancing.

Mortgage interest and property taxes are typically tax-deductible. Consult a tax professional to maximize your deductions in the first year.

Start building equity by maintaining your home and making improvements that add value. Avoid taking on major new debt immediately after purchase.