Conventional
Often explored by: Purchase and refinance
A common purchase and refinance path with flexible occupancy options when credit, income, and down payment align.
National Mortgage Center|Powered by Stride Bank
The Ultimate First-Time Homebuyer Guide
Everything you need to buy your first home — in one place.
Understand your budget, compare mortgage options, prepare your documents, explore assistance resources, and build a personalized first-home plan. No SSN required.
No credit impact pre-qualification Step-by-step guidance Dedicated loan specialist
$500M+
Funded
50
States
4.9/5
Rating
Start Your Home Buying Journey
Pick the best first step for you.
Get Pre-QualifiedSee what you can afford
Take Readiness QuizFind your best next step
Estimate My PaymentQuick affordability check
Prefer to talk? (855) 699-1424
Last updated: February 2026Reviewed by National Mortgage Center team
Build Your First Home Plan
Answer a few quick questions to organize your homebuying goals and personalize the tools below.
Find Your Mortgage Target
Compare comfortable, target, and stretch purchase scenarios. These estimates are for planning, not qualification.
Compare First-Time Buyer Loan Programs
Scan the programs first-time buyers often explore, then open the full comparison when you want more detail.
Quick program overview
FHA
Often explored by: Lower-down-payment planning
A government-backed purchase and refinance path often explored for flexible credit or lower down-payment planning.
VA
Often explored by: Eligible veterans and service members
A benefit-based path for eligible veterans, service members, and surviving spouses, including $0-down purchase options in many cases.
USDA
Often explored by: Eligible rural or suburban buyers
A rural and some suburban purchase path that may offer $0-down financing when location and income limits are met.
8 mortgage programs are documented on this site.
Explore Homebuyer Assistance
Find official resources that may be available where you're planning to buy.
Explore official down-payment and homebuyer resources that may be available where you're planning to buy. This is not a list of programs you qualify for.
Program availability, funding, limits, and eligibility requirements can change. Confirm current details with the sponsoring organization and your mortgage professional.
The Home Buying Journey: Step by Step
Click each step to see what happens, what you need, and common pitfalls to avoid.
What Happens
Submit your financial information to a lender to get a pre-qualification letter showing how much you can borrow.
What You Need
Income docs, ID, credit authorization, bank statements.
Watch Out
Don't skip this step — sellers won't take your offer seriously without it.
Understand the True Cost of Buying
Buying a home usually involves more than the down payment. Estimate an educational cash-planning range.
Buying a home usually involves more than the down payment. This educational range is for planning, not a Loan Estimate.
- Down payment
- $17,500
- Estimated closing costs
- $7,000 – $17,500
- Inspection
- $300 – $500
- Appraisal
- $400 – $700
- Prepaid taxes / insurance
- $992 – $2,975
- Moving / initial expenses
- $1,000 – $3,000
Estimated upfront cash planning range
$27,192 – $42,175
Earnest money (often 1–3%) is typically credited toward your down payment or closing costs, so it is not added again in this total.
Seller concessions
Ask the seller to contribute toward closing costs when the market supports it.
Lender credits
Some borrowers compare a slightly higher rate in exchange for credits that reduce upfront cash.
Down payment assistance
State and local programs may offer grants or deferred seconds. Confirm current rules with the sponsoring agency.
Gift funds
Family members may gift down-payment funds with a proper gift letter when the program allows it.
Understand Your Credit Before You Buy
Select an approximate range to see educational next steps. This is not a credit pull.
Choose an approximate range. This is educational guidance, not a credit pull, pricing quote, or approval.
- Review credit reports
- Avoid unnecessary new debt
- Pay bills on time
- Avoid closing long-standing accounts without understanding the impact
- Discuss major credit changes with a mortgage professional
My Homebuyer Document Checklist
Check items as you gather them. Additional documents may still be requested.
After Your Offer Is Accepted
A clear sequence from earnest money through clear to close.
1 of 7
Offer accepted
What it is: The seller accepts your written offer, including price, timing, and contingencies.
Why it matters: This starts the clock on inspection, appraisal, and financing timelines.
What you may need to do: A signed contract and a plan for earnest money.
Common question: Can I still walk away? Often yes, if a valid contingency applies.
2 of 7
Earnest money
What it is: A good-faith deposit, commonly 1–3% of the offer price, is held in escrow.
Why it matters: It shows the seller you are serious and is usually credited at closing.
What you may need to do: Cleared funds and written escrow instructions.
Common question: Do I lose it if I cancel? Only if you cancel without a valid contingency.
3 of 7
Home inspection
What it is: An inspector reviews structure, roof, HVAC, plumbing, electrical, and major systems.
Why it matters: It helps you understand condition before you are committed to the purchase.
What you may need to do: Inspection fee and time to attend if you can.
Common question: Should I skip it to save money? No. The report can prevent much larger surprises.
4 of 7
Negotiation / repairs
What it is: You may request repairs, credits, or a price change based on inspection findings.
Why it matters: Not every finding is a deal-breaker, but major issues should be addressed in writing.
What you may need to do: The inspection report and your agent’s help prioritizing items.
Common question: Do sellers have to fix everything? No. Negotiation depends on the market and the contract.
5 of 7
Appraisal
What it is: A licensed appraiser estimates market value for the lender.
Why it matters: The loan amount is typically limited by the appraised value.
What you may need to do: Appraisal fee and property access.
Common question: What if value comes in low? You may renegotiate, bring extra cash, or use an appraisal contingency.
6 of 7
Underwriting
What it is: The lender reviews income, assets, credit, and the property file.
Why it matters: This is where remaining conditions are cleared before closing.
What you may need to do: Fast responses to document requests.
Common question: Can I make a large purchase now? Avoid new debt and job changes until after closing.
7 of 7
Clear to close
What it is: Conditions are satisfied and closing can be scheduled.
Why it matters: You can then review the Closing Disclosure and prepare funds.
What you may need to do: Photo ID, insurance, and verified wiring instructions.
Common question: Do I get keys immediately? Timing depends on funding and local recording practices.
What Actually Happens on Closing Day?
Before, during, and after closing — including the documents you'll typically sign.
Before closing
- Review the Closing Disclosure
- Prepare required funds
- Complete the final walkthrough
- Confirm identification
At closing
- Review documents
- Sign required forms
- Ask questions
- Complete the required closing process
After closing
- Funding and recording process
- Ownership transfer as applicable
- Receive keys depending on the transaction
Keys are not always handed over immediately in every state.
What you'll sign
- Promissory note
- Your promise to repay the loan.
- Mortgage / deed of trust
- Secures the property as collateral.
- Closing Disclosure
- Summarizes final loan terms and closing costs.
- Additional documents
- Federal, state, lender, title, and transaction documents may also apply.
Wire fraud warning
Never wire money based on email instructions alone. Always verify wiring instructions by phone using a number you looked up yourself.
Top 10 First-Time Buyer Mistakes
Avoid these common pitfalls that can delay or derail your home purchase.
Should I Keep Renting or Consider Buying?
A compact educational comparison using your first-home plan assumptions.
Educational cash-flow comparison under your assumptions. This is not a recommendation to rent or buy.
Estimated monthly cash flow
Rent $2,000
Buy $2,846
Estimated 5-year housing cash
Rent $120,000
Buy $170,783
Under these assumptions, renting currently requires less estimated monthly cash flow. Appreciation, maintenance, transaction costs, rates, taxes, and insurance are uncertain.
Open the full rent vs buy calculatorHuman help when you need it
Buying Your First Home Is a Big Deal. You Don't Have to Figure It Out Alone.
Use our tools and guides to learn at your own pace, then connect with a mortgage specialist when you'd like help understanding your options.
Frequently Asked Questions
Answers to common first-time homebuyer questions.
How much down payment do I need as a first-time homebuyer?
First-time buyers can put down as little as 0% with VA or USDA loans, 3% with conventional loans, or 3.5% with FHA loans. Down payment assistance programs may further reduce your out-of-pocket cost. Your ideal down payment depends on your loan type, credit score, and financial goals.Learn more →
What credit score do I need to buy my first home?
FHA purchase paths are often explored around a 580 credit range with 3.5% down, or a higher down payment at lower scores. Conventional loans are commonly discussed around 620+. Higher scores may improve pricing conversations. Guidelines vary and this is not a credit decision.Learn more →
How much house can I afford?
Use the 28/36 rule: your housing payment should stay under 28% of gross income, and total debts under 36%. For example, with $6,000/month gross income, aim for a housing payment under $1,680. Use our affordability calculator above for a personalized estimate.Learn more →
What are closing costs and how much should I expect?
Closing costs typically run 2–5% of the purchase price and include lender fees, title insurance, appraisal, inspection, and prepaid taxes/insurance. On a $350,000 home, expect $7,000–$17,500. Some costs are negotiable, and sellers or lenders may offer credits.
Should I get pre-qualified before house hunting?
Absolutely. Pre-qualification shows sellers you're a serious buyer, helps you know your budget, and lets you move quickly when you find the right home. It typically takes 1–3 days and does not require a hard credit pull with many lenders.Learn more →
FHA vs. Conventional — which is better for first-time buyers?
FHA loans are ideal if your credit is below 700 or you have limited savings (3.5% down). Conventional loans are better if you have 620+ credit and want to avoid mortgage insurance once you reach 20% equity. We help you compare both options side by side.Learn more →
What first-time buyer assistance programs are available?
Buyers often research state housing finance agency programs, local down-payment assistance, employer programs, and FHA, VA, or USDA loan paths. Availability, funding, and eligibility change. Confirm current details with the sponsoring organization and a mortgage professional.
How long does it take to buy a house as a first-time buyer?
The entire process typically takes 3–6 months: 1–2 months for preparation and pre-qualification, 1–3 months for house hunting, and 30–45 days from contract to closing. Being prepared with documents and a pre-qualification letter speeds everything up.
What should I NOT do before closing on a home?
Don't open new credit accounts, make large purchases, change jobs, co-sign loans, make large undocumented deposits, or miss any bill payments. These actions can delay or derail your mortgage. Stay financially stable from pre-qualification through closing day.
What is earnest money and how much do I need?
Earnest money is a deposit (typically 1–3% of the offer price) that shows the seller you're serious. It goes toward your down payment or closing costs at closing. If you back out without a valid contingency, you may forfeit it.
What's the difference between a home inspection and an appraisal?
An inspection checks the home's condition (structure, roof, plumbing, electrical) and protects you. An appraisal determines the home's market value and protects the lender. Both are essential — never skip the inspection to save a few hundred dollars.
Can I buy a home with student loans?
Yes, many buyers with student loans still explore a mortgage. Student loans usually count in debt-to-income calculations. FHA paths are often described as more flexible on DTI, but the full file still matters. A specialist can help you understand the tradeoffs.Learn more →
Explore Loan Programs
Ready to Start Your First-Home Plan?
Build a planning summary from the tools on this page, then talk with a specialist when you want help.
National Mortgage Center is Powered by Stride Bank – NMLS ID #466690. VA-approved lender. Not affiliated with any government agency.