The first-time home buyer guide walks you through every stage of the home buying process — from checking your financial readiness to getting your keys on closing day.
How to Buy Your First Home
The first-time home buyer guide demystifies the home buying process so you know what to expect at every stage and can avoid common mistakes.
Get Pre-Approved Before You Shop
Many buyers make the mistake of falling in love with a home before knowing their budget. Get pre-approved for a mortgage before starting your search — not just pre-qualified. A pre-approval involves a hard credit check and income verification, and gives you a real spending limit. Sellers take pre-approved buyers far more seriously in offer situations.
Budget for More Than the Down Payment
The down payment is the most visible cost, but closing costs add 2-5% of the loan amount (think: $7,000-$17,500 on a $350K loan). Also budget for moving expenses, immediate repairs, and replacing anything that breaks in the first 90 days. Many new homeowners are "house poor" because they didn't account for these post-purchase costs.
The Home Inspection Is Non-Negotiable
Never waive a home inspection, even in a competitive market. A $400-600 inspection can reveal $20,000-$100,000 in problems (foundation issues, roof age, HVAC condition). In hot markets where sellers resist inspection contingencies, still do an inspection for informational purposes — you'll just have to decide whether to proceed knowing the issues.
FAQ
Is this first home buyer guide free?
Yes, completely free with no signup required.
How much should I save before buying a house?
Save for: down payment (3-20% of purchase price), closing costs (2-5% of loan amount), and a 3-6 month emergency fund after buying. For a $350,000 home with 10% down, you'd need roughly $35,000 down + $7,000-$17,500 closing costs + reserves = $50,000-$60,000 minimum.
What credit score is needed to buy a house?
Minimum credit scores by loan type: FHA loans 580+ (3.5% down), conventional loans 620-640+ (3% down), VA loans typically 580-620+. For the best conventional mortgage rates, aim for 740+. At 740+, you'll pay significantly less in mortgage insurance and interest over the loan term.
What is PMI and how do I avoid it?
Private Mortgage Insurance (PMI) is required on conventional loans with less than 20% down. PMI costs 0.5-1.5% of your loan annually ($1,750-$5,250/year on a $350K loan). Avoid it by putting 20% down, using a piggyback loan (80/10/10), or choosing a lender-paid PMI option (slightly higher rate instead).
How long does the home buying process take?
From starting your search to closing takes 3-6 months on average: pre-approval (1-2 weeks), home search (1-3 months), offer to closing (30-60 days). In competitive markets, budget 6-12 months. The process can be faster if you're pre-approved, know your target area well, and have financing ready.