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FIRST-TIME HOMEBUYER

First-Time Homebuyer Guide

Buying your first home is one of the biggest financial decisions you'll make. Our AI advisor walks you through every step — from credit scores to closing day — for free, with no pressure and no credit pull.

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No credit pull · No sign-up · NMLS #1598577

3%
Minimum down payment on many conventional loans
620
Minimum credit score for most conventional loans
2–5%
Typical closing costs as % of purchase price

The Homebuying Process — Step by Step

1
Check your credit & finances
Know your credit score, monthly income, existing debts, and how much you have saved. Lenders use your debt-to-income ratio (DTI) and credit score to determine what you qualify for.
2
Get pre-approved
Before house hunting, get a pre-approval letter from a lender. This tells sellers you're serious and shows your max budget. It requires a credit check and income verification.
3
Choose the right loan type
Conventional, FHA, VA, or USDA — each has different down payment, credit, and eligibility requirements. The right choice depends on your credit, savings, and military status.
4
Make an offer
Once you find a home, your agent submits an offer. In competitive markets, your pre-approval letter is essential. Negotiate price, contingencies, and closing date.
5
Home inspection & appraisal
A home inspection uncovers issues. An appraisal confirms the home's value matches the loan amount. Both protect you — don't skip them.
6
Close the loan
Review your Closing Disclosure 3 days before closing. Bring a cashier's check or wire transfer for closing costs (2–5% of loan). Sign the docs and get your keys.

Loan Types for First-Time Buyers

Conventional3%+620+Good credit, wants to avoid FHA fees
FHA Loan3.5%+580+Lower credit scores, smaller down payment
VA Loan0%FlexibleVeterans, active duty, surviving spouses
USDA Loan0%640+Rural/suburban areas, income limits apply

Common First-Time Buyer Questions

How much house can I afford as a first-time buyer?→What is PMI and do I have to pay it?→What are closing costs for first-time buyers?→Should I get an FHA or conventional loan?→How long does the homebuying process take?→What first-time homebuyer programs are available?→

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NMLS #1598577 · For informational purposes only · Not financial advice