Nobody’s born knowing how mortgages work, and most first-time buyers are figuring this out for the first time under real time pressure. This page is meant to be the explanation nobody gave you yet.
Step 1: Understand what you can actually afford
Before you fall in love with a listing, get a real read on your numbers — not just what a lender will approve you for, but what payment you’re actually comfortable with. Lenders qualify you based on debt-to-income ratios; you should qualify yourself based on your actual budget and goals.
Step 2: Check your credit and address anything obvious
Your credit score affects both whether you qualify and what rate you’re offered. Before applying, pull your report, dispute any errors, and avoid opening new credit or making large purchases in the months before you apply.
Step 3: Learn your down payment options
Many first-time buyers assume they need 20% down. Most don’t:
- Conventional loans can go as low as 3% down for qualified buyers
- FHA loans require as little as 3.5% down, with more flexible credit requirements
- VA loans offer 0% down for eligible veterans and service members
- USDA loans offer 0% down for eligible rural and suburban properties
- Down payment assistance programs may be available in your area — ask us what applies to you
Step 4: Get pre-approved before you shop
A pre-approval tells sellers you’re a serious, qualified buyer, and tells you your real price range before you start touring homes. This should happen before, not after, you find a house you love.
Step 5: Understand closing costs upfront
Closing costs typically run 2–5% of the purchase price and cover things like appraisal, title insurance, and lender fees. We’ll give you a full breakdown before you’re anywhere near the closing table — no surprises.
Step 6: Know what happens between contract and closing
Once you’re under contract: the home gets appraised, your file goes through underwriting, and you’ll be asked for documentation along the way. This typically takes 30–45 days. We’ll tell you exactly what to expect and when.
A note on going it alone vs. working with a broker
First-time buyers benefit the most from broker representation, precisely because this is unfamiliar territory — a broker who shops the market and explains each step tends to save first-timers both money and stress. See our page on mortgage brokers vs. banks for more on why.
We offer competitive rates on every first-time buyer program.
Let’s talk through your specific situation — no obligation, no pressure. →
