Benefits
- Eliminate rate penalties even with a small down payment or lower credit score
- Simplified approvals for W2 employees
- Quick closing – just 14 days from contract to keys
- Enjoy rates that stay fixed for life
Eligibility
- Eligibility for first-time homebuyers only
- 3% or more down payment required
- Minimum credit score of 620 needed
- For primary residences only
Buying your first home can feel overwhelming. Between understanding what you can afford, how credit impacts your loan, and what happens during the process, it’s easy to feel unsure about where to start.
The good news is—once you understand the steps, the process becomes much more manageable. This guide will walk you through what to expect so you can move forward with confidence.
Know What You Can Afford
Before you start shopping for homes, it’s important to understand what fits comfortably within your budget.
Lenders evaluate several factors when determining how much you qualify for, including your income, debt, credit score, down payment, and location. But qualification alone isn’t the full picture—you want to make sure your monthly payment aligns with your overall financial goals.
Your total monthly payment will typically include:
- Principal and interest
- Property taxes
- Homeowners insurance
It’s also a good idea to maintain savings for unexpected expenses. A common recommendation is to have at least three months of total expenses set aside for peace of mind.
Understand Your Credit
Your credit score plays a key role in your mortgage options and the interest rate you receive. In general, a higher credit score can lead to better loan terms and lower monthly payments.
To maintain or improve your credit:
- Pay all bills on time
- Keep credit card balances low
- Avoid opening or closing accounts before applying
- Review your credit report for errors
Even small improvements in your credit profile can make a meaningful difference in your loan.
Save for Your Purchase
When preparing to buy a home, there are two main costs to plan for: your down payment and your closing costs.
Down Payment:
Depending on the loan program, many first-time buyers can qualify with as little as 3% to 5% down.
Closing Costs:
These typically range from 2% to 5% of the loan amount and include expenses such as taxes, insurance, appraisal fees, and title-related costs.
There are also down payment and closing cost assistance programs available for eligible buyers, which can help reduce upfront expenses.
Get Pre-Approved
A pre-approval is one of the most important steps in the homebuying process.
It gives you:
- A clear understanding of your price range
- Confidence when making an offer
- A competitive advantage with sellers
During this step, you’ll provide documentation such as income, assets, employment history, and credit information. While a pre-approval is not a final loan approval, it positions you to move forward with clarity and speed.
Find a Home and Make an Offer
Once you’re pre-approved, you can begin shopping for homes with confidence.
When you find the right property, you’ll work with your real estate agent to submit an offer. Depending on the market, your offer may be at, below, or above the asking price. The seller may accept, reject, or counter your offer.
Earnest Money and Inspection
After your offer is accepted, you’ll typically submit an earnest money deposit. This shows the seller you’re serious about the purchase and is later applied toward your down payment or closing costs.
Next comes the home inspection. This step helps identify any issues with the property and gives you an opportunity to negotiate repairs or make an informed decision before moving forward.
Complete Your Loan Application
At this stage, your mortgage application is finalized and submitted for review. Your lender will use this information to determine your eligibility and structure your loan.
Accuracy and organization are key here, as they help ensure a smooth process.
Underwriting
Underwriting is where your loan is fully reviewed. The lender evaluates your income, assets, credit, and the property to confirm everything meets guidelines.
During this time:
- Avoid taking on new debt
- Avoid large purchases
- Stay responsive to any requests
A well-prepared application can help this step move more efficiently.
Appraisal
An appraisal is completed to determine the value of the home based on market data and property details.
If the appraised value meets or exceeds the purchase price, the process continues as planned. If it comes in lower, you may need to renegotiate or adjust your financing.
Closing Day
Closing is the final step where everything comes together.
You’ll review and sign your loan documents, finalize your funds, and complete the transaction. Once everything is complete, you’ll receive the keys to your new home.
Most closings are completed within a couple of hours.
Your Guide Through the Process
Buying a home is one of the biggest financial decisions you’ll make, and having the right guidance can make all the difference.
As a mortgage broker and Certified Mortgage Advisor, I help you understand your options, structure your loan strategically, and navigate each step with clarity—so you can move forward with confidence.
Get Started
If you’re thinking about buying a home, the first step is understanding your numbers.
Reach out today to explore your options and create a plan that fits your goals