Once upon a time, Sarah and Leo were tired of their cramped apartment and noisy neighbors. They dreamed of a place with a backyard for their dog and a kitchen where they could actually open the dishwasher and the fridge at the same time. They decided it was time to buy their first home.
Aiming for a monthly payment no more than 30% of their gross income, having 30% of the home's value in savings, and ensuring the home price isn't more than 3x their annual income.
They also looked into some financial "safety nets" to help them budget:
Setting aside 20% for a down payment, keeping monthly installments under 30% of their income, and leaving 40% for other savings goals. Phase 2: The Golden Ticket
Before visiting a single open house, Sarah and Leo sat down with their bank statements. They learned that the first rule of home buying is to . They checked their credit scores, knowing that a higher score could secure a better interest rate.
