Phil Aitken
Phil Aitken
Owner/Broker

What Are The First 5 Steps to Buying a House?

Wondering what the first 5 steps are to buying a house? Understanding the initial steps in the home-buying process can help you navigate this significant financial decision with confidence. As mortgage rates continue to fluctuate, being prepared is more important than ever for prospective home buyers in Jacksonville and Northeast Florida. 

In this blog post, Jacksonville realtor Phil Aitken and the professionals at Your Home Sold Guaranteed Realty - Phil Aitken Home Team will discuss the first five steps to buying a house.

Key Takeaways:

  • Your credit score and financial health are crucial factors in determining your mortgage options and interest rates.
  • Having a realistic budget that accounts for all homeownership costs is essential before starting your search.
  • Working with experienced professionals, including a trusted local realtor and mortgage lender, can make the process smoother.
  • Getting pre-approved for a mortgage should happen before you start looking at homes.
  • The right preparation can help you compete effectively in Jacksonville’s active real estate market.

What Are The First 5 Steps to Buying a House?

1. Check Your Credit Score and Review Your Finances

Your credit score plays a vital role in your home-buying journey. Jacksonville realtor Phil Aitken explains,

“The first thing I always tell my clients is to check their credit score and address any issues before applying for a mortgage. A higher credit score can save you thousands of dollars over the life of your loan through better interest rates.”

Start by obtaining your free credit report from all three major credit bureaus and look for any errors or areas for improvement. Most lenders require a minimum credit score of 620, but a score of 740 or higher will typically qualify you for the best interest rates.

2. Determine Your Budget and Housing Affordability

Understanding how much house you can afford involves more than just looking at the purchase price. Consider your monthly income, existing debts, and future financial goals. A common rule of thumb is that your monthly housing costs shouldn’t exceed 28% of your gross monthly income.

Remember to factor in property taxes, homeowners insurance, possible HOA fees, and maintenance costs. Jacksonville’s property tax rates and insurance costs can vary significantly by neighborhood, so research these expenses for areas you’re interested in.

3. Save for Down Payment and Closing Costs

One of the biggest hurdles for first-time homebuyers is saving enough for a down payment and closing costs. Aitken notes,

“Many first-time buyers are surprised to learn that they don’t necessarily need a 20% down payment to buy a home. There are many loan programs available in Jacksonville that require as little as 3% down, especially for first-time buyers.”

However, keep in mind that a larger down payment can lead to lower monthly payments and better loan terms. Additionally, plan to save 2 to 5% of the purchase price for closing costs.

4. Get Pre-Approved for a Mortgage

Before you start touring homes for sale, getting pre-approved for a mortgage is essential. This process involves a lender reviewing your financial information and providing a letter stating how much they’re willing to lend you.

Shop around with different lenders to compare rates and terms. Local Jacksonville lenders often have experience with specific neighborhood requirements and may offer special programs for first-time buyers. In addition, a pre-approval letter makes your offers stronger and shows sellers you’re a serious buyer.

5. Find an Experienced Local Realtor

Partnering with the right realtor makes a significant difference in your home-buying experience. A knowledgeable local realtor understands Jacksonville’s diverse neighborhoods, from the historic charm of Riverside to the family-friendly communities of Mandarin.

A realtor can also provide valuable insights about school districts, flood zones, and future development plans that might affect property values.

They will also help you navigate the offer process, negotiations, closing, and the many documents involved in a real estate transaction.

Buy Your Dream Home in Jacksonville Today 

Your Home Sold Guaranteed Realty - Phil Aitken Home Team. What Are The First 5 Steps to Buying a House?

At Your Home Sold Guaranteed Realty - Phil Aitken Home Team, Phil Aitken and our team have been rated as the best realtor in Jacksonville. We’ve been in the business for many years and have helped hundreds of clients buy their dream homes in Jacksonville, including many first-time buyers. 

We make it easy to navigate the first 5 steps to buying a house, thanks to our Buyer Satisfaction Guarantee. This guarantee ensures you end up with a home that meets your budget and preferences. 

Have more questions about buying a home in Jacksonville with our team? Give us a call at (904) 544-5252 or send a message to [javascript protected email address]. You can also fill out the form on this page. Get ready to start packing!

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!

How do I find the right property?

Finding the right property starts with creating a list of your must-haves and preferences in a home. Consider factors like location, size, and amenities that are important to you. Working with a realtor can also help streamline this process by providing insights into available listings that meet your criteria.

Phil Aitken, Owner/Broker
Phil Aitken is the Owner/Broker with Your Home Sold Guaranteed Realty - Phil Aitken Home Team and has over 13 years of Real Estate experience. Phil’s faith and desire for his family’s continued security fuel his business growth and leadership. The Phil Aitken Home Team continues to profoundly impact the people of Jacksonville via supporting several faith-based organizations. Phil gives back a portion of every real estate transaction to The Tim Tebow Foundation and Rethreaded. Find Phil's full story here.