8 Tips For First-Time Homebuyers

Before buying a home, first-time buyers should manage debt to keep their debt-to-income ratio below 36%, improve credit scores by reducing credit card balances and disputing errors, and budget for new expenses like taxes and insurance. Saving for a down payment (3.5%-20%) and getting preapproved for a mortgage helps define buying power. Research home types and neighborhoods, and shop around for mortgage rates to save money. Consider down payment assistance programs and weigh financing options carefully.