🏠 First-Time Home Buyer Guide

Your complete step-by-step roadmap — from saving to closing

🧮 How Much Home Can You Afford?

📍 The 8 Steps to Buying Your First Home

1

Check & Improve Your Credit Score

Your credit score determines your mortgage rate. A 760+ score gets you the best rates. Check all 3 bureaus for free at AnnualCreditReport.com.

  • Conventional loans: 620+ minimum (740+ for best rates)
  • FHA loans: 580+ with 3.5% down; 500–579 with 10% down
  • VA loans: No minimum, but lenders typically require 620+
Tip: Pay down credit cards to below 10% utilization — this alone can raise your score 20–50 points in 30 days.
2

Save for Down Payment & Closing Costs

You'll need more than just the down payment. Budget for closing costs, which add 2–5% of the purchase price.

  • Conventional loan: 3–20% down (PMI required if under 20%)
  • FHA loan: 3.5% down
  • VA/USDA loan: 0% down (eligible buyers only)
  • Closing costs: 2–5% of loan amount ($6K–$15K typical)
First-Time Buyer Programs: Many states offer grants or low-interest loans for first-time buyers. Check your state's housing finance agency.
3

Get Pre-Approved for a Mortgage

Pre-approval is a lender's written commitment to loan you up to a certain amount. It makes your offer competitive.

  • Compare at least 3 lenders (banks, credit unions, mortgage brokers)
  • A 1% rate difference on a $300K loan = ~$60,000 in extra interest
  • Pre-approval is valid for 60–90 days
Tip: Multiple mortgage inquiries within 45 days count as ONE hard inquiry. Shop around freely.
4

Find a Real Estate Agent

A buyer's agent is FREE for you — the seller pays their commission (typically 2.5–3%).

  • Interview 2–3 agents before choosing
  • Look for local market expertise and communication style fit
  • Check reviews on Zillow, Realtor.com, or Google
5

House Hunt & Make an Offer

Know your must-haves vs nice-to-haves. In competitive markets, be ready to move fast.

  • Visit 10–15 homes before making a decision
  • Research school districts, commute times, and neighborhood trends
  • Your offer includes price, contingencies, and earnest money (1–3%)
Tip: An escalation clause automatically raises your offer up to a max if competing bids come in.
6

Home Inspection & Negotiation

Never skip the inspection. A $300–$500 inspection can save you tens of thousands.

  • Inspector examines structure, roof, HVAC, plumbing, and electrical
  • Use findings to negotiate repairs or price reductions
  • Consider specialty inspections: radon, mold, sewer line
7

Final Loan Approval & Appraisal

After an accepted offer, your lender orders an appraisal to confirm the home's value matches the purchase price.

  • Avoid major purchases or new credit lines during this period
  • Gather documents: tax returns, pay stubs, bank statements
  • Review the Closing Disclosure 3 days before closing
8

Closing Day 🎉

You'll sign approximately 100 pages of documents and pay closing costs. Then you get the keys!

  • Bring government-issued ID and cashier's check or wire the closing funds
  • Do a final walkthrough within 24 hours of closing
  • Change locks immediately after receiving keys

✅ First-Time Buyer Checklist

📅 Typical Home Buying Timeline

Phase 1
3–12 months

Save down payment, improve credit

Phase 2
1–2 weeks

Get pre-approved, hire agent

Phase 3
1–3 months

House hunt and make offer

Phase 4
30–60 days

Under contract to closing