What Is the Rule of 3 When Buying a House? - MIDFLORIDA Credit Union
: Use the 30% rule —your total housing costs (mortgage, insurance, taxes, utilities) should not exceed 30% of your take-home pay. Save for Upfront Costs :
: Aim for 20% to avoid Private Mortgage Insurance (PMI), though some loans allow as little as 3% . what steps should i take to buy a house
: Aim to keep your total monthly debt payments (including your future mortgage) below 36% of your gross monthly income.
: Compare at least three lenders to find the best interest rates and loan programs (e.g., FHA , VA, or Conventional). What Is the Rule of 3 When Buying a House
: Review your credit report from AnnualCreditReport.com for errors that could lower your score. A score of 740+ typically unlocks the best rates.
Buying a home is a major financial milestone that requires careful preparation, especially in the 2026 market where and clean, competitive offers are essential. Phase 1: Financial Preparation : Aim to keep your total monthly debt
: A pre-approval letter is a formal document stating how much a bank is willing to lend you. It proves to sellers that you are a serious, qualified buyer. Gather Documentation : Have the following ready: Last 2 years of tax returns and W-2s. Recent 30 days of pay stubs. Last 2–3 months of bank statements. Phase 3: The Search and Selection