Before You Start
Build Credit
- Get a secured credit card
- Pay all bills on time
- Target: FICO 680+ for good mortgage rates
- Allow 6-12 months to build history
Prepare Down Payment
- Minimum 3-5% (FHA: 3.5%)
- Recommended: 20% to avoid PMI
- Funds must be in US bank for 2+ months
- Foreign transfers need source documentation
The 8-Step Process
- Choose an Agent — Buyer's agent is free (paid by seller)
- Get Pre-Approved — Need tax returns, pay stubs, bank statements
- House Hunting — Search Redfin/Zillow, tour with your agent
- Make an Offer — Price, earnest money, contingencies
- Negotiate — Counter-offers, terms adjustments
- Home Inspection — $400-$600, covers structure, systems, pests
- Loan Processing — Appraisal, underwriting (30-45 days)
- Closing — Sign documents, pay closing costs (2-5%), get keys!
Common Mistakes
- All-cash isn't always better — leverage can be advantageous
- Don't skip inspection — even for new construction
- Budget for closing costs beyond just the down payment