Work backward from what you earn and owe to find a realistic price range before you start touring homes.
Your Finances
Practical tips & common mistakes
Down payment moves the needle
Every 5% more down cuts PMI and monthly — rerun scenarios at 10%, 15%, and 20% before you shop price ranges.
Using listing price as budget
Closing costs (2–5%) and immediate repairs need cash outside the loan. Do not zero your savings for down payment alone.
Rate buydowns
Seller concessions or points that buy down rate can beat stretching price — compare total 7-year cost, not sticker price.
DTI limits
Back-end DTI includes car loans and cards. Pay down revolving balances before pre-approval for a higher safe purchase price.