While 100% cash is his ideal, a is acceptable for first-time buyers. Step 2: The 25% Affordability Rule
: Aim for 20% down to avoid Private Mortgage Insurance (PMI). dave ramsey buying a house
: Get fully underwritten preapproval before starting your search to prove you are a serious buyer. Step 4: The Buying Process While 100% cash is his ideal, a is
: Research neighborhoods and be patient enough to wait for a home that fits your budget. Step 4: The Buying Process : Research neighborhoods
: Avoid 30-year loans, which he considers "interest traps".
: Never skip a home inspection; it protects you from hidden structural or mechanical disasters.
: Budget an additional 3–4% of the purchase price for closing costs so you don't have to borrow more money at the finish line. Tips for First-Time Home Buyers - Ramsey Solutions