There are several key steps to buying a home, and you can count on your Prudential Locations agent to be by your side throughout the entire process, with up-to-date information, professional expertise and advice. Your agent will customize the process to fit your unique needs.

Download our handy Homebuying Checklist for a printable version of this list.

1. Estimate what you can spend

Sizing up your finances early will prepare you to find the best home loan. Use a few standard guidelines to gauge your home buying power:

• Estimate two and a half times annual income.
• Calculate 28% of before-tax income for monthly housing debt (mortgage payments, property taxes, insurance and any maintenance costs for a co-op or condominium).
• Determine how much money you've saved for a down payment and closing costs.
• Get a rough estimate of how much you can afford with our How Much Can I Borrow? Calculator.
• Start gathering relevant financial papers needed for your application and be one step ahead of the game. Our Mortgage Checklist can help.

2. Get pre-approved

A pre-approval is a letter from a lender to give homebuyers a specific loan amount and loan type. You can get pre-approved before or after you have found a home to buy. However, many buyers find they have increased negotiating clout if they are already pre-approved when they conduct their home search.

• Check your credit report, if needed, to make sure there are no surprises.
• Apply for pre-approval.

3. Find the right home

House hunting can be fun and exciting, but you have to do some homework to find the right home for you. Choose a Prudential Locations agent, and together you will:

• Investigate neighborhoods and schools.
• Conduct a cost-of-living comparison if planning to buy in a different geographical area.
• Prioritize desired home features. Get started with our Wish List.
• Make an offer and negotiate a final price.
• Have the home inspected.

4. Close the deal

If you've followed the steps above, these final stages of the home purchase should go smoothly:

• Find the best mortgage for you. Talk to a mortgage consultant to explore your options.
• Organize your documents and information before you apply. Follow our Mortgage Checklist.
• Apply for a mortgage and obtain a commitment letter. For homebuyers with pre-approvals, this will be a formal application.
• Close the loan. A real estate agent, settlement agent, or attorney generally walks homebuyers through the process of meeting contract contingencies and scheduling settlements.
• Move in and celebrate!