First-Time Homebuyer's Guide
Buying your first home is exciting — and a little overwhelming. Here's a clear, no-pressure roadmap of the steps involved so you know what to expect.
In this guide
Step 1 — Know your budget
Before falling in love with a listing, understand what you can comfortably afford. A common guideline is keeping your total housing payment around 28% of gross monthly income, but your comfort level matters more than any rule of thumb.
Step 2 — Check & build your credit
Pull your free reports at AnnualCreditReport.com, dispute errors, and pay down balances. Even a small score improvement can lower your rate. Learn how credit affects your mortgage →
Step 3 — Save for down payment & closing costs
Down payments range from 0% (VA) to 3.5% (FHA) to 20%+ (to avoid PMI on conventional). Don't forget closing costs, which typically run 2–5% of the purchase price. See what closing costs include →
Step 4 — Get pre-approved (educational)
A pre-approval letter shows sellers you're a serious buyer. It's based on a lender's review of your finances. This is something you arrange with a licensed lender of your choosing — HomeWise does not collect applications.
Step 5 — Shop, offer, inspect, close
Tour homes, make an offer with an agent, complete inspections and an appraisal, and finalize your loan. At closing you'll sign documents, pay closing costs, and get the keys.
Related Guides
Get a Free Booklet
Pick a topic — each opens a quick page where your PDF downloads free.
- VA Loan Booklet Zero-down benefits, the funding fee, and eligibility — explained.
- FHA Loan Booklet 3.5% down, credit flexibility, and how mortgage insurance works.
- Conventional Loan Booklet Low-down options, PMI, and how to get the best pricing.
- Refinancing Booklet Rate-and-term vs. cash-out, and finding your break-even point.
- First-Time Buyer Booklet A step-by-step roadmap from budgeting to closing day.
- Jumbo Loan Booklet High-balance loans: requirements, rates, and when they make sense.
- DSCR Investor Loan Booklet Qualify on rental income, not personal W-2s — built for investors.
- Reverse Mortgage Booklet How HECMs work, eligibility, and what homeowners 62+ should know.
- HELOC & Home Equity Booklet Compare HELOCs and home equity loans: structure, rates, and use cases.
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