5 Simple Steps to Prepare for Buying a House

25 Aug 2026 · 2 min

Watch on YouTube

1:36

In this instructional video, Louis Barajas (joined by Roxy) walks prospective homebuyers through five practical steps to get ready for purchasing a house. First, he emphasizes knowing your numbers—understanding income, expenses, debt, and realistic monthly affordability—so you base your search on what you can actually pay. Second, he advises getting your credit ready by checking reports, maintaining on‑time payments, and reducing credit‑card balances, noting credit’s impact on mortgage qualification and cost. Third, he urges saving cash not just for a down payment (which can be as low as 3.5% depending on the loan program) but also for closing costs, moving expenses, and other hidden fees. Fourth, he recommends talking to multiple lenders, obtaining pre‑approval, and comparing mortgage options while still ensuring the loan fits your budget. Finally, he stresses finding a real‑estate professional who understands your financial limits, neighborhood preferences, and goals, warning against being steered toward the most expensive home you qualify for. He frames home‑buying as a process that begins months or years before an open house, starting with the decision to prepare. The video concludes with a call to follow his "Finanzas con Corazón" brand and a plug for his book, "Finanzas con Corazón: The Latino Journey to Financial Dignity."

Chapters

People keep asking me, how do I prepare to buy a house? So today it's gonna be Roxy. Roxy and I are gonna share with you 5 simple steps. Number 1, know your numbers. How much money do you make? How much do you spend? How much debt do you already have? And how much can you realistically afford every month? Don't start with the house that you want, start with the payment that you can afford. Number 2, get your credit ready. Check your credit report and your credit score. Pay your bills on time. Work on reducing your credit card balances. Your credit can affect whether you qualify for a mortgage or how much that mortgage ultimately costs you. Number 3, start saving some cash and don't automatically assume you're gonna need 20% down. Depending on the mortgage program you qualify for, your down payment could be much lower, as low as 3.5%. But remember, you're not just saving for the down payment. There are closing costs, moving expenses, and all that other surprises that come with owning a home. Number 4, talk to your lenders and get pre-approved. Learn what types of mortgages you qualify for. Compare several lenders. And here's something more important. Just because the bank says you can borrow a certain amount of money doesn't mean that you should. You still need room in your budget to live. And the last one, number 5, find the right real estate professional. Find somebody who understands your budget, your neighborhood, and what you're trying to accomplish. And don't let somebody sell you the most expensive house that you qualify for. Find somebody who will help you buy the right house for your financial life. And remember, buying a home doesn't start when you walk into an open house. It starts months and sometimes years before that. It starts when you make the decision that I'm going to finally prepare myself to become a homeowner. And please follow me for more Finanzas con Corazón and check out my new book on amazon.com, Finanzas con Corazón: The Latino Journey to Financial Dignity.