15 First-Time Home Buyer Tips

Buying your first home is a major milestone — and it can feel overwhelming. But with the right information, you can navigate the process with confidence.

1. Invest in Homeownership Education

Before diving in, take time to understand the basics:

• A mortgage is a loan for buying a house that you pay back over time with interest
• Most buyers put down 3%–20% upfront and finance the rest
• 30-year mortgages offer lower payments but more interest over time
• 15-year mortgages have higher payments but save thousands in interest

Consider taking a home buying education class — some down payment assistance programs actually require it.

Ask Yourself:

• ✅ Am I ready to commit to this home for at least 5 years?
• ✅ Do I have an emergency fund covering 3 months of expenses?
• ✅ Do I have stable income?
• ✅ Do I have enough for a down payment (plus closing costs)?

If you answered “yes” to these, you’re ready to start!

2. Explore First-Time Buyer Programs

You may qualify for programs that make buying more affordable:

• State/Local Assistance — Many states offer down payment assistance, closing cost aid, and grants
• Fannie Mae HomePath — Up to 3% of purchase price toward closing costs after completing a home buyer education course
• Good Neighbor Next Door — Teachers, firefighters, police, and EMTs can get discounts in revitalization areas
• MCC Tax Credits — Mortgage Credit Certificates let you claim a credit on mortgage interest

3. Know the Difference: Prequalified vs. Preapproved

Preapproval shows sellers you’re a serious, qualified buyer — gives you a competitive edge.

4. Understand Your Loan Options

• Conventional — As little as 3% down, but usually requires 620+ credit
• FHA — 3.5% down with 580+ credit, more flexible on credit history
• VA — 0% down for veterans and active military
• USDA — 0% down for rural/suburban areas (income limits apply)

5. Save for Down Payment — and Closing Costs

Don’t forget: closing costs are 3%–6% of the loan amount, separate from your down payment.

Ways to Boost Your Savings:

• Automate transfers to a dedicated savings account
• Reduce discretionary spending
• Explore down payment assistance programs
• Ask about seller concessions

6. Check Your Credit

Before applying:

• Don’t open new credit — New loans/credit cards affect your score
• Pay down balances — Lower utilization improves your score
• Dispute errors — Check your report for mistakes

7. Find the Right Real Estate Agent

Your agent should:

• Have experience in your target neighborhoods
• Communicate clearly and frequently
• Understand your needs and budget
• Provide references from past clients

8. Make a Smart Offer

• Don’t stretch beyond your budget — being “house poor” is stressful
• Earnest money is typically 1%–3% of the price
• Include an inspection contingency to protect yourself

9. Get the Home Inspected

A home inspection identifies issues like:

• Electrical problems
• Plumbing leaks
• Roof or foundation concerns
• HVAC issues

Appraisal protects the lender; inspection protects you.

10. Plan for Maintenance

Create a savings buffer for repairs. A good rule: budget 1% of your home’s value annually for maintenance.

Ready to Buy?

Getting pre-qualified is the first step. It tells you exactly what you can afford and shows sellers you’re serious.

Get Pre-Qualified →