First-time homebuyer guide: Your path to homeownership

Buying your first home

The home buying process can feel overwhelming, especially when you're doing it for the first time. There's a lot of jargon, plenty of paperwork, and what seems like endless decisions to make. But here's the thing: it doesn't have to be complicated.

We've helped hundreds of first-time buyers in Pennsylvania, New Jersey, and across the country navigate this process. And while every situation is different, the basics are pretty straightforward once you know what to expect.

What you actually need to buy a home

Let's clear up some common misconceptions. You don't need perfect credit. You don't need 20% down. And you definitely don't need to figure this out on your own.

Here's what matters:

Credit score: Most loan programs work with scores as low as 580-620. If you're above 700, you'll have more options and better rates. But even with lower scores, there are paths forward.

Down payment: The 20% down payment is a myth that keeps many people from buying sooner than they could. FHA loans require just 3.5% down. Conventional loans can go as low as 3%. And if you're a veteran, VA loans offer 0% down.

Income verification: You'll need to show you can afford the monthly payments. For most buyers, this means W-2s and pay stubs. Self-employed? We have options for you too.

Debt-to-income ratio: Lenders look at how much of your income goes to debt payments. Generally, you want to keep your total debt payments (including your new mortgage) under 43-45% of your gross income.

Loan programs for first-time buyers

Several loan programs are specifically designed to help first-time buyers:

FHA Loans: Government-backed loans with lower credit requirements (580+) and just 3.5% down. Great for buyers who are still building their credit.

Conventional Loans: Traditional loans that can work with as little as 3% down. If you have good credit (700+), these often offer the best rates.

HomeReady and Home Possible: Special conventional loan programs for lower-income buyers with flexible income requirements and 3% down payments.

VA Loans: If you're a veteran or active military, VA loans offer 0% down and no private mortgage insurance. It's one of the best loan programs available.

Down Payment Assistance: Many states and local programs offer grants or low-interest loans to help with your down payment. We can help you find programs you might qualify for.

The process, step by step

Here's what the home buying timeline typically looks like:

1. Get pre-qualified (1-2 days) We'll review your finances and let you know how much you can afford. This gives you a realistic budget and shows sellers you're serious.

2. Find a home (varies) Work with a real estate agent to find homes in your price range. Take your time here. This is a big decision.

3. Make an offer (1-3 days) When you find the right place, your agent will help you make a competitive offer.

4. Loan application (1 week) Once your offer is accepted, we'll finalize your loan application and order an appraisal.

5. Underwriting (2-3 weeks) The lender reviews everything and gives final approval. This is where patience helps.

6. Closing (1 day) Sign the papers, get your keys, move in. You're a homeowner.

From start to finish, most buyers close in 30-45 days after their offer is accepted.

Common questions from first-time buyers

How much house can I afford? A good rule of thumb: your monthly payment (including taxes and insurance) shouldn't exceed 28% of your gross monthly income. We'll give you a more precise number during pre-qualification.

Should I pay points to lower my rate? It depends on how long you plan to stay in the home. Generally, if you're staying 5+ years, paying points can make sense. We'll run the numbers for your specific situation.

What about closing costs? Expect to pay 2-5% of the purchase price in closing costs. These include lender fees, title insurance, prepaid taxes, and more. Sometimes sellers will contribute to closing costs as part of negotiations.

Do I need a home inspection? Yes. Always. A few hundred dollars for an inspection can save you thousands in unexpected repairs.

Ready to start?

The best time to start is now, even if you're not quite ready to buy. Getting pre-qualified costs nothing and tells you exactly where you stand. From there, we can work on any areas that need improvement before you start house hunting.

Get Pre-Qualified or Schedule a Call to talk through your options.