First-Time Buyer's Guide

Everything you need to know about buying your first home

Step by Step

Your path to homeownership

Six simple steps from dreaming to owning

01

Check Your Credit

Review your credit score and report. Most lenders require a minimum score of 620 for conventional loans, though FHA loans may accept scores as low as 580. Fix any errors and pay down debts to improve your score.

02

Get Pre-Approved

A pre-approval letter shows sellers you're a serious buyer with verified financing. You'll learn exactly how much house you can afford, giving you confidence to make offers quickly in competitive markets.

03

Find an Agent

A great buyer's agent is your advocate throughout the process. They'll help you find homes, negotiate offers, navigate inspections, and guide you all the way to closing — typically at no cost to you.

04

House Hunt

Search for homes that fit your budget, location, and lifestyle. Tour properties in person, attend open houses, and don't rush — finding the right home takes time. Keep a checklist of must-haves vs. nice-to-haves.

05

Make an Offer

Your agent will help you craft a competitive offer based on comparable sales, market conditions, and the home's condition. Be prepared to negotiate — the seller may counter, and you'll work together to reach agreement.

06

Close the Deal

Once your offer is accepted, you'll complete inspections, secure your mortgage, and do a final walk-through. At closing, you'll sign the paperwork, get the keys, and officially become a homeowner. Welcome home!

Be Prepared

What you'll need

The essentials for buying your first home

Down Payment

Typically 3–20% of the home price. FHA loans require as little as 3.5% down. Some programs offer down payment assistance for first-time buyers. A larger down payment means lower monthly payments and no PMI.

Closing Costs

Budget 2–5% of the purchase price for closing costs. These include loan origination fees, title insurance, appraisal, inspections, and prepaid taxes/insurance. Some sellers may agree to cover a portion.

Good Credit Score

A score of 740+ gets you the best rates. 700–739 is good. 620–699 is fair — you'll qualify but pay higher interest. Below 620, consider FHA loans or take time to build your credit before applying.

Proof of Income

Lenders will ask for W-2s (2 years), recent pay stubs, tax returns, and bank statements. Self-employed buyers should prepare profit-and-loss statements and two years of business tax returns.

Save Money

First-time buyer programs

Special programs designed to make homeownership more accessible

3.5%
Minimum Down Payment

FHA Loans

Backed by the Federal Housing Administration. Lower credit score requirements (580+), smaller down payment, and more flexible qualifying guidelines. Ideal for buyers with limited savings or credit history.

0%
Down Payment

VA Loans

Available to veterans, active-duty military, and eligible surviving spouses. Zero down payment, no PMI, and competitive interest rates. One of the best mortgage benefits available.

0%
Down Payment

USDA Loans

For homes in eligible rural and suburban areas. Zero down payment with income limits. Don't assume you don't qualify — many suburban neighborhoods outside major cities are USDA-eligible.

Varies
By Location

State & Local Programs

Many states and cities offer down payment assistance, tax credits, and below-market interest rates for first-time buyers. Check with your lender or state housing authority for programs in your area.

FAQ

Common questions

Answers to the most frequently asked questions from first-time buyers

It depends on the loan type. Conventional loans typically require 5-20%, FHA loans need just 3.5%, and VA/USDA loans offer 0% down. The average first-time buyer puts down around 7%. Remember: a lower down payment means higher monthly payments and possibly PMI.
For conventional loans, most lenders require at least 620. FHA loans may accept scores as low as 580 (or 500 with 10% down). The higher your score, the better your interest rate — a score of 740+ typically gets the best rates, which can save you tens of thousands over the life of the loan.
From start to finish, expect 2-6 months. Getting pre-approved takes 1-3 days. House hunting can take weeks to months. Once you're under contract, closing typically takes 30-45 days. Cash buyers can close in as little as 2 weeks.
Absolutely. Pre-approval tells you exactly what you can afford, so you don't waste time looking at homes outside your budget. It also makes your offers stronger — sellers take pre-approved buyers more seriously. Many listing agents won't even consider offers without a pre-approval letter.
Closing costs are fees paid at the end of the transaction, typically 2-5% of the purchase price. They include lender fees, title insurance, appraisal fees, home inspection, property taxes, and homeowner's insurance. On a $300,000 home, expect $6,000-$15,000 in closing costs. Some of these are negotiable.
While not legally required, having a buyer's agent is highly recommended — especially for first-time buyers. They provide market expertise, handle negotiations, coordinate inspections, and guide you through paperwork. A good agent can save you thousands and prevent costly mistakes.

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