Before you start saving properties and contacting agents, it's crucial to get your finances in order. This means clearing old debts, improving your credit score, and building a robust savings to ideally cover a 20% down payment. This should be your first step.

Most banks require at least a 5% down payment. However, be aware that if your down payment is less than 20%, you'll likely need to pay for private mortgage insurance (PMI).

Once your finances are organized, it's time to prepare for your home search. Start by visiting a bank to get pre-approved for a home loan.

Remember, pre-approval and pre-qualification are different:

Pre-Qualification: Estimates how much you can afford to spend on a home.
Pre-Approval: Confirms how much the bank will lend you.

Having a pre-approval letter when attending an open house shows sellers you're a serious buyer. It also helps you stay within your budget. Don’t forget to account for additional costs such as:

Inspections
Repairs
Closing Costs
Contingencies
Other Fees