Home Ownership
This calculator estimates your home budget based on your income, ZIP code, and down payment—assuming no debt. It factors in local taxes and insurance. For a full picture, talk to a lender.
Steps to Buying a Home
Buying a home can be broken down into 3 sections
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Getting Finances In Order
Check your finances, get pre-approved for a mortgage, and understand your budget—including after-tax income, debts, and down payment.
Finding the Right Home
Work with a trusted real estate agent, tour homes, and make a competitive offer once you find the one that fits your needs.
Close the Deal
Get a home inspection, finalize your loan, sign the paperwork, and get the keys to your new home.
Getting Finances in Order
1. Pay Down High-Interest Debt
Mortgage lenders look at your debt-to-income ratio. If you're carrying credit card or personal loan debt, start chipping away at it now. Less debt = more home you can afford.
2. Understand Your Budget
A smart rule of thumb: keep your monthly housing costs (mortgage, taxes, insurance) under 30% of your after-tax income. That ensures you can still afford savings, emergencies, and a life outside your home.
3. Save for a Down Payment
Aim for at least 5–20% down. The more you save, the less you’ll pay in interest and private mortgage insurance (PMI). Pro tip: don’t forget to budget for closing costs too (2–5% of the home price).
4. Know Your Credit Score—and Improve It
Your credit score affects your interest rate. Check it early. If it’s under 700, work on paying bills on time, lowering balances, and avoiding new credit inquiries. Every point counts.
5. Get Pre-Approved for a Mortgage
This is a must. It tells you exactly what you can afford, shows sellers you're serious, and speeds up the buying process. It’s free and gives you a clear price range to shop within.
Finding the Right Home
1. Work with a great buyer’s agent
A skilled realtor is your guide through the entire process—helping you spot red flags, negotiate smarter, and avoid overpaying. Look for someone who’s active in your target area and isn’t afraid to push on your behalf.
2. Be ready to make a strong offer:
In competitive markets, sellers care about more than just price. Clean offers with fewer contingencies—and flexibility on timing—can win even if you don’t bid the highest.
3. Use seller rate buy-downs strategically:
Some sellers may be willing to help cover closing costs or buy down your mortgage rate. This can lower your monthly payment and help you afford more house for the same money.
4. Don’t ignore homes that have been sitting:
A home that’s been on the market 30+ days often signals opportunity. The seller may be more willing to negotiate on price or offer concessions.
5. Know your must-haves vs. nice-to-haves:
Being clear about what matters most (location, layout, school district) will help you avoid buyer fatigue and spot the right home faster when it shows up.
Close The Deal
1. The Closing Timeline
Once your offer is accepted, you can expect the closing process to take around 30 to 45 days. It might feel like the finish line is in sight, but there’s still a lot that needs to happen behind the scenes—like appraisals, underwriting, and inspections. Staying proactive during this time can keep things on track and help avoid delays.
2. Get Your Documents Ready
Your lender is going to ask for a lot of paperwork—tax returns, W-2s, bank statements, pay stubs, and more. Get these together early so you're not scrambling last minute. The faster you respond to document requests, the smoother (and quicker) the process goes.
3. Don’t Take on New Debt
This is a big one—don’t open new credit cards, finance a car, or make any big purchases before you close. Your lender will pull your credit again before final approval, and anything new could mess with your debt-to-income ratio and jeopardize your loan.
4. Home Inspection Is Critical
Always get a thorough home inspection, no matter how nice the home looks. It’s your chance to catch any issues before the deal is final. And even though it costs extra, seriously consider a mold inspection. Mold is easy to miss and can lead to major health and repair problems later.
5. Understand the Option Period
In many states, especially Texas, you get an "option period" right after your offer is accepted—usually 5 to 10 days. It gives you time to do inspections and back out if something major comes up. You’re essentially buying time to make sure the house is the right fit before locking it in.
6. Stay in Close Contact With Your Lender & Agent
Things move fast at the end. Make it a point to stay in touch with your lender and realtor every few days. The more responsive and available you are, the fewer surprises you'll run into, and the faster you'll get those keys in your hand.