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Am I really ready to buy?
Buying a home offers many advantages, one of the most significant being that it allows you to build equity (ownership) when you pay your mortgage each month. A common myth is that monthly mortgage payments are more expensive than rent. But, in many cases, mortgage payments can be even less than rent. When considering homeownership for the first time, you need to decide whether buying makes financial and practical sense for you right now or if you are better off renting. Consider both the advantages and disadvantages to renting as well as buying, and weigh the pros and cons for your particular situation.
How much “house” can I afford?
The first step toward finding the right home is to quickly compute your purchasing power and determine how much you can afford to pay each month. This saves you time by allowing you to focus on homes in your price range.
In addition, you should consider both the up-front and ongoing costs associated with purchasing a home in the planning stage.
Some upfront costs include
How much can I get pre-qualified for?
Before you go looking for a home, you should see if you are financially able to get a mortgage and get an estimate of what you pre-qualify for from a lender. If you are working with a real estate agent, getting pre-qualified lets them know you are a knowledgeable and serious buyer.
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Downpayment: Typically ranges from 3-30% of the 
cost of the house. The more you can put down, the 
greater equity you will have in your home and the lower 
your monthly payment will be. For downpayments less 
than 20% you may also need to pay mortgage 
insurance. 
Closing Costs: Typically range from 2-6% of the loan 
amount depending on your area. 
On-going Costs: Your housing costs can include the 
following: 
Monthly mortgage payment
Homeowners insurance
Mortgage Insurance, if applicable
Flood Insurance, if applicable
Property taxes
Utilities
Maintenance