The home buying guide.
A step-by-step roadmap to navigating the real estate market with clarity and confidence. Eight chapters, in the order things actually happen.
Start Reading Talk with JenEight chapters, one calm plan.
Getting ready.
Before the numbers, a little clarity. Knowing why you are buying and when makes every decision after this one easier.
Most people start by looking at listings. It is more useful to start by looking at your life. Why do you want to own? Is it space, stability, a school district, an investment, a place to build equity instead of paying rent? The answer shapes what kind of home makes sense and how aggressive the plan should be.
Next, be honest about your timeline. Just researching, six to twelve months out, three to six months, or ready now? Each of those calls for a different pace. There is no wrong answer, only a wrong plan for the answer.
Questions worth answering first
- How long do you expect to stay in this home?
- Do you need to sell a current home first?
- Is anything about your income changing in the next year?
- What monthly payment would feel comfortable, not just possible?
- Who else is part of this decision?
My background in counseling taught me that good decisions begin with feeling heard. If you cannot answer these yet, that is fine. Bring them to our first conversation and we will work through them together.
What you can afford.
A calculator gives you a number. A strategy gives you a number you can live with.
Lenders look at the ratio of your monthly debts to your gross income to decide how much you can borrow. That ceiling is useful, but it is not a recommendation. The payment you qualify for and the payment that lets you sleep well are often different numbers, and we plan around the second one.
Three numbers to know
- Monthly payment. Principal, interest, property taxes, homeowners insurance, mortgage insurance if any, and HOA dues. Not just the loan.
- Cash through closing. Down payment plus closing costs, prepaid taxes and insurance, earnest money and the inspection and appraisal fees along the way.
- Reserves after closing. What is still in the bank the day after you get the keys. A cushion for moving, repairs and the unexpected.
Terms worth knowing
- Debt-to-income (DTI)
- Your monthly debt payments divided by your gross monthly income. Lenders use it to size your loan.
- Loan-to-value (LTV)
- The loan amount as a share of the home's value. A bigger down payment means a lower LTV.
- APR
- The interest rate plus certain costs, expressed as a yearly rate. Useful for comparing offers side by side.
- Points
- An upfront fee paid to lower the interest rate. Worth it only if you keep the loan long enough to recoup it.
The Mortgage Calculator on this site is a good place to play with the monthly number. The strategy quiz is a better place to see the whole picture, including cash to close and reserves.
Credit and documents.
What a lender actually looks at, and how to have it ready so nothing slows you down.
Your credit tells a lender how you have handled money in the past. Pull your free reports, correct any errors and keep paying every bill on time. If something needs work, it is far better to find out now than in the middle of an offer.
How your income is documented matters just as much. A W-2 employee, a business owner, a physician on a new contract, a retiree and someone with several income sources are all read differently. The right program depends on reading yours fairly.
Documents to gather
- Two years of W-2s and federal tax returns, all pages and schedules
- Pay stubs covering the most recent thirty days
- Two months of bank and asset statements, every account, every page
- Government-issued photo ID
- Gift letter and proof of transfer if family is helping
- Self-employed: two years of business returns, a year-to-date profit and loss, and proof of ownership
- Short explanations for any large deposits, gaps in employment or credit events
Every file is different and I may ask for one or two more items. Having this list ready means pre-approval can move in days, not weeks.
Pre-approval.
The step that turns you from someone browsing into someone a seller takes seriously.
A pre-qualification is a quick estimate based on what you tell a lender. A pre-approval is different: your credit, income, assets and employment are actually reviewed, and you receive a letter that says so. In a competitive market, agents and sellers expect to see that letter with your offer.
How to get a strong one
- Submit the complete document list from chapter three in one go
- Review your options and the estimated payment for each before choosing a direction
- Ask for the letter to be written at the price you plan to offer, not the maximum
- Get it before you tour homes, so you are ready when the right one appears
A pre-approval is not an obligation to buy or to use any particular lender. It is information. The more of it you have before you shop, the calmer the whole process feels.
Choosing your loan.
The program is the outcome of the plan, not the starting point. Here is what each one tends to be good for.
- Conventional
- The familiar choice for many buyers, with low down payment options and mortgage insurance that can be removed over time.
- FHA
- More forgiving credit guidelines and a modest minimum down payment. A common starting point for buyers earlier in building credit or savings.
- VA
- For eligible veterans, service members and surviving spouses. No down payment and no monthly mortgage insurance.
- USDA
- No down payment for homes in eligible rural and suburban areas, with income limits that vary by location.
- Jumbo
- Financing above conventional loan limits, structured around your assets, income and how you prefer to hold cash.
- Asset-based and alternative documentation
- For business owners and complex income, when tax returns understate what you earn. Bank statements or assets can tell a more accurate story.
- Construction
- Financing to build rather than buy, with a draw schedule and a conversion to permanent financing when the home is complete.
- Down payment assistance
- State and local programs that can help cover the down payment or closing costs. Eligibility varies and can often be layered with the programs above.
Fixed or adjustable, fifteen or thirty years, points or no points: these are strategy decisions that depend on how long you expect to keep the home and the loan. We will walk through them with your actual numbers.
The search and the offer.
The part everyone looks forward to, done with a plan so it stays enjoyable.
A good real estate agent knows your area, the local market and how to write an offer that wins without overpaying. If you do not have one, ask for a referral; the right agent and the right lender working together make everything smoother.
Shopping with confidence
- Write down your must-haves and your nice-to-haves before the first showing
- Stay inside the payment you chose in chapter two, not the ceiling from chapter four
- Ask about property taxes, HOA dues, special assessments and insurance costs for each home
- Include your pre-approval letter with your offer and keep your lender in the loop on timing
Terms worth knowing
- Earnest money
- A deposit made when your offer is accepted, held in escrow and applied to your costs at closing.
- Contingency
- A condition that lets you step back from the contract, such as a satisfactory inspection or appraisal.
- Escrow
- A neutral third party that holds funds and documents until closing. Also the account that pays your taxes and insurance afterward.
- Appraisal gap
- When the home appraises below the offer price. Knowing how you would handle one before it happens is part of a good plan.
Under contract to closing.
Offer accepted. Here is what happens between now and the keys, in order.
- Deposit your earnest money into escrow on time
- Schedule a professional inspection and review the report inside your contingency period
- Your lender orders the appraisal to confirm the home's value supports the loan
- Shop for and secure homeowners insurance
- Respond quickly to any underwriting requests for documents
- Review your Closing Disclosure, which arrives at least three business days before closing
- Do a final walk-through to confirm the home's condition and any agreed repairs
- Wire or bring your funds to close, then sign with the notary or escrow officer and collect your keys
Do not open new credit or finance big purchases, do not change jobs, do not make large undocumented cash deposits, and do not move money between accounts without asking first. Almost anything is fine with a plan; surprises are what cause delays.
Always verify wiring instructions by phone with your escrow officer, using a number you already have, never one from an email. Fraud targeting home buyers at closing is common, and a two-minute call is the best protection.
After you close.
The relationship does not end at the closing table. The home should serve the bigger plan.
Congratulations. The first year is about settling in: set up your payments, understand your escrow account, keep your insurance current and build the cushion back up if closing used some of it.
After that, the long view begins. Rates change, equity grows and your goals shift. A refinance can make sense when the total cost and your time horizon line up. Equity can fund a renovation, an investment property or a move-up home. The right time to think about any of this is before you need to.
Check in with Jen when
- Rates move meaningfully from where you closed
- Your income or household changes
- You are thinking about an investment property or a second home
- Mortgage insurance may be eligible for removal
Our commitment extends far beyond the closing table. Text, call or book a time whenever a question comes up, even years from now. That is what a long-term relationship means.
Print it, save it, share it.
Keep a copy nearby as you move through each chapter, or send it to whoever is part of the decision with you.
Questions on any chapter?
That is what the first conversation is for. No forms, no credit pull, no pressure. Just clear answers from someone who listens first.
Book Your Consultation Jennifer Constantineau · Private Mortgage Advisor · NMLS #2543503
