First-Time Home Buyer Guide
Everything you need to know to buy your first home with confidence
Navigate the home buying process step-by-step with expert guidance and insider tips.
Guide Contents
Getting Started
Buying your first home is one of the biggest financial decisions you'll make. This guide will walk you through every step of the process.
Assess Your Financial Readiness
Before you start house hunting, make sure you're financially prepared.
- Check your credit score (aim for 620+ for conventional loans)
- Calculate your debt-to-income ratio (keep below 43%)
- Save for down payment (3% minimum, 20% ideal)
- Build an emergency fund (3-6 months expenses)
- Get pre-approved for a mortgage to know your budget
Determine Your Budget
Know exactly how much house you can afford before you start shopping.
- Use the 28/36 rule: Housing costs ≤ 28% of gross income
- Factor in property taxes, insurance, HOA fees
- Consider closing costs (2-5% of home price)
- Plan for moving expenses and immediate repairs
- Don't forget ongoing maintenance costs (1-3% annually)
First-Time Buyer Programs
FHA First-Time Buyer
3.5% down payment, flexible credit requirements
Benefits:
- Lower down payment
- Gift funds allowed
- Assumable loans
Requirements:
- Credit score 580+
- Primary residence only
- MIP required
VA Loans
0% down for eligible veterans and service members
Benefits:
- No down payment
- No PMI
- Competitive rates
Requirements:
- Military service
- Certificate of Eligibility
- Primary residence
USDA Rural Development
0% down for eligible rural and suburban areas
Benefits:
- No down payment
- Below-market rates
- Flexible credit
Requirements:
- Income limits
- Rural area
- Primary residence
State/Local Programs
Down payment assistance and favorable terms
Benefits:
- Down payment grants
- Reduced rates
- Closing cost help
Requirements:
- Income limits
- First-time buyer
- Location specific
Expert Tips for First-Time Buyers
Financial Tips
- Start saving early - even $50/month adds up
- Improve your credit score before applying
- Get pre-approved before house hunting
- Don't make major purchases during the process
Shopping Tips
- Work with an experienced buyer's agent
- Visit homes multiple times before deciding
- Research the neighborhood thoroughly
- Consider future resale value
Negotiation Tips
- Don't offer asking price immediately
- Include appropriate contingencies
- Be prepared to walk away
- Negotiate repairs vs. price reductions
🏛️ Official Government Resources
Comprehensive guide from the Consumer Financial Protection Bureau
Department of Housing and Urban Development resources
Programs and resources for first-time homebuyers
Step-by-step homebuying guide
Ready to Start Your Journey?
Connect with a qualified loan officer who can guide you through the first-time homebuying process.