Build the foundation before you shop

First-Time Homebuyer Guide

Buying your first home becomes more manageable when you organize the budget, cash, credit, documents and professional team before making an offer.

Review Your Homebuying Plan Mortgage Pre-Approval

29 years of mortgage experiencePlain-language guidanceComplete financial review

The short answer

What Should a First-Time Buyer Do First?

Begin with your goals, expected timeline and a complete household budget. A mortgage pre-approval can then evaluate documented income, assets, credit, obligations and the proposed payment range.

The lowest available down payment is not automatically the best plan. Compare the payment, mortgage insurance or program fees, closing costs, reserves and money needed after closing.

Important:Assistance programs and mortgage options have different eligibility, documentation and property requirements.

Build the complete picture

Six Areas to Review

A reliable plan connects the borrower, property, funds and expected timeline.

Budget

Separate lender qualification from the payment you can comfortably carry.

Cash Plan

Include down payment, closing costs, prepaid expenses, reserves and moving needs.

Credit

Review history, balances and recent changes before the application.

Documents

Prepare income, asset, identification and housing-history records.

Property

Consider location, condition, taxes, insurance and association costs.

Timeline

Allow time for pre-approval, offers, inspections, appraisal and underwriting.

Make a confident decision

Prepare the Complete Homebuying Plan

Use verified income, assets and obligations
Compare the complete monthly housing payment
Confirm the cash required and funds remaining
Review property and occupancy requirements
Understand closing costs and prepaid expenses
Keep the expected ownership timeline in view

Continue preparing

Related Homebuyer Guides

Mortgage Pre-Approval

Learn what is reviewed and what can still change before closing.

Review Pre-Approval →

Buy a Home

See how preparation, property selection, financing and closing fit together.

Review the Buying Process →

Homebuyer FAQ

Find plain-language answers to common purchase questions.

Read the FAQ →

Start with your goal

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Begin with a conversation about your budget, income, assets, credit, property goals and expected timeline.

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Homebuyer FAQ

Homebuyer Questions

Clear Answers for Your Homebuying Journey

Explore straightforward answers about preparation, affordability, credit, mortgage options, offers and closing. The details of your transaction may vary, but knowing what to ask is a strong place to begin.

Ask About Your Buying Plan View the First-Time Buyer Guide

29 years of mortgage experience
Plain-language answers
Guidance from preparation through closing

Begin With Context

Why Can the Answer Differ From Buyer to Buyer?

Mortgage options and homebuying costs depend on the borrower, property, loan program, location, market conditions and purchase agreement. General rules can provide direction, but they cannot replace a review of the actual transaction.

Treat online answers as a starting point—not an individual loan decision.

Eligibility, approval, rates, payments and costs depend on the information reviewed and the requirements that apply at that time.

Getting Started

What should I do first if I want to buy a home?

Start by reviewing your goals, complete monthly budget, available funds, recurring debts, credit profile and expected purchase timeline. Then discuss potential financing options before focusing on individual properties.

What is the difference between prequalification and pre-approval?

A prequalification may be based largely on information you provide and may involve limited verification. A pre-approval generally involves a more detailed review of financial and credit information.

Processes and terminology vary by lender. Neither one is final loan approval or a guarantee of particular terms.

How long does the homebuying process take?

There is no universal timeline. Preparation, the home search, negotiations, inspections, appraisal, underwriting and closing can all affect how long the process takes.

Money and Affordability

Do I need a 20% down payment?

No. Some mortgage programs permit lower down payments, while certain eligible borrowers may have access to no-down-payment options. A lower down payment can affect mortgage insurance, monthly payment, rate and overall loan cost.

How much money do I need beyond the down payment?

Plan for closing costs, prepaid expenses, initial escrow funding, inspections, appraisal, moving expenses, immediate repairs and the savings you want to retain after closing.

What can be included in the monthly housing payment?

The complete payment may include principal, interest, property taxes, homeowners insurance and mortgage insurance. HOA dues and other property costs may be paid separately but still belong in the household budget.

Credit and Financing

What credit score do I need to buy a home?

There is no single score that applies to every mortgage. Requirements vary by loan program, lender and the complete application. Credit can affect eligibility, interest rate, mortgage insurance and overall financing cost.

Should I pay off debt or close accounts before applying?

Not automatically. Paying off, transferring or closing an account can change available funds, monthly obligations, utilization and the credit profile. Review the potential effect before making a major change.

Are first-time buyers limited to one type of mortgage?

No. Depending on eligibility and the property, a first-time buyer may consider conventional, FHA, VA, USDA or other specialized financing and assistance programs.

Offer Through Closing

What is earnest money?

Earnest money is a deposit that may accompany an offer to show the buyer’s intent to complete the purchase. How it is handled depends on the contract and applicable rules. If the purchase closes, it is generally credited toward transaction amounts.

Is an appraisal the same as a home inspection?

No. An appraisal provides an opinion of property value for the mortgage process. A home inspection evaluates accessible property conditions within the inspector’s scope. One does not replace the other.

What financial changes should I avoid before closing?

Avoid opening new credit, financing large purchases, moving money without documentation or making unreviewed employment, income, asset or debt changes. Report material changes promptly.

What should I review before signing at closing?

Review the final loan terms, interest rate, payment, closing costs, Cash to Close, escrow information and other documents. Ask about anything that differs from what you expected before signing.

Before You Act

Ask How a Decision Affects the Complete Plan

How will it change the monthly payment?
How will it change the cash needed at closing?
Could it affect eligibility, pricing or documentation?
Does it leave enough savings after the purchase?
Is the decision based on verified information or an assumption?

Explore the Details

Go Deeper With a Homebuyer Guide

Have a Different Question?

Ready to Talk About Your Homebuying Plan?

Start with a conversation about your goals, available funds, payment priorities and expected timeline so your questions can be considered in the context of your complete plan.