First Time Buyer’s Guide

Buying your first home can be an exciting yet overwhelming experience. This guide will walk you through the essential steps and provide helpful tips to make the process smoother.

• Aim for a credit score of 620 or higher for most conventional loans, though FHA loans may accept scores as low as 580.
• Contact multiple lenders to compare rates and terms. This can save you money over the life of the loan. 
• Choose your lender. Meet with more than one lender to find the best choice for you.
• With the help of your lender determine your Debt-to-Income Ratio.
• Your lender will estimate how much you can afford based on your income, expenses, and down payment.
• Based on the type of loan, you need 0-20% of the home’s purchase price for a down payment. 
• Account for closing costs (2-5% of the home’s price), property taxes, insurance, maintenance, and potential homeowner association (HOA) fees.
• Obtain a pre-approval letter from your lender. This shows sellers you are serious and financially capable. 
• Consult with your lender to determine if you qualify for any downpayment assistance based on your profession, location, military service, or income.
• With your lender, decide the type of loan that works best for your situation: Fixed or Adjustable Rate, FHA, VA, USDA, or ARM.
• Identify your must-haves (e.g., number of bedrooms, location) and nice-to-haves (e.g., a pool, updated kitchen).
• Choose your Realtor by meeting with a few to find one who understands your needs and has experience in your desired area.
• Visit multiple homes with your Realtor to get a sense of what is available in your price range.
• Work with your Realtor to make a competitive offer based on comparable homes in the area.
• With the help of your Realtor, be prepared to negotiate terms with the seller.
• You and your Realtor will schedule a home inspection to identify any potential issues with the property.
• Consult with your Realtor to negotiate repair request with the seller.
• Provide all required documents to your lender for the underwriting process.
• Carefully review the loan estimate detailing the terms, interest rate, monthly payment, and closing costs.
• Conduct a final walkthrough of the property with your Realtor to ensure all agreed-upon repairs have been made and the home is in good condition.
• Sign the final paperwork, pay closing costs, and receive the keys to your new home.