First time home buyers typically have a lot of questions and we love to help!

Buying your first home is a significant milestone — and, for most people, the largest financial commitment they’ve made to date. There’s a lot of unfamiliar vocabulary, several parties involved, and a sequence of steps that isn’t always obvious from the outside.

This guide walks through the process from credit review to closing day. Our aim is to help you understand what happens at each stage, what lenders are evaluating, and where first-time buyers most often get tripped up.

Start With Your Credit

Credit scores generally range from 300 to 850 and play a meaningful role in determining eligibility, available terms, and pricing. A stronger credit profile may open access to more options, though credit is only one of several factors lenders weigh.

Scores are built from your credit history: payment record, amounts owed relative to available credit, length of history, mix of account types, and recent inquiries. It’s worth pulling your reports early — well before you start shopping — for two reasons. First, errors are more common than people expect, and disputes take time to resolve. Second, if there are items worth addressing, you’ll want that runway.

If your credit isn’t where you’d like it, that’s useful to know now rather than mid-transaction. A mortgage professional can explain how your current profile affects available financing and what steps may be worth considering before you apply.

Pre-Qualification vs. Pre-Approval

These get used interchangeably, but they’re not the same thing, and the difference matters when you’re competing for a property.

Pre-qualification is a preliminary estimate based on information you provide. The information reviewed and verified varies by lender. Ask what has been checked and which conditions remain. It’s useful for early budgeting and little else.

Pre-approval involves an actual review — income, assets, debts, and credit history are examined and documented. It carries considerably more weight with sellers because a lender has looked at real information.

Neither is a guarantee of final approval. Final approval remains subject to underwriting, property requirements, verification of documentation, and applicable lender guidelines. A pre-approval also typically has an expiration date, since the financial snapshot behind it goes stale.

If financing isn’t available to you right now, that isn’t necessarily permanent. Circumstances change, and revisiting the process later is a reasonable path.

Understanding Your Loan Options

Which program fits depends on your finances, credit profile, down payment, the property itself, how you’ll occupy it, and how long you plan to stay.

Fixed-Rate Mortgage

The interest rate stays the same for the life of the loan, so the principal and interest portion of your payment stays consistent. Your total payment may still change if taxes, insurance, or mortgage insurance costs shift.

Adjustable-Rate Mortgage

The rate is fixed for an initial period, then adjusts periodically according to the terms of the loan. Payments may go up or down after the fixed period ends. Understanding the adjustment schedule and caps before committing is essential.

FHA Loan

Insured by the Federal Housing Administration and offered through approved lenders. Eligible borrowers may access lower down payment requirements and more flexible credit guidelines than some conventional programs. FHA borrowers pay Mortgage Insurance Premium — an upfront premium plus an annual premium collected monthly.

VA Loan

Guaranteed by the Department of Veterans Affairs and offered through approved lenders. Eligible borrowers may access financing with no required down payment. VA loans generally do not require monthly private mortgage insurance, though a funding fee may apply. Eligibility extends to qualifying veterans, active-duty service members, certain National Guard and Reserve members, and some surviving spouses.

Conventional Loans

Not government-backed. Down payment requirements vary, and private mortgage insurance may apply below certain equity thresholds — but unlike FHA MIP, conventional PMI can generally be removed once sufficient equity is established.

Working With a Real Estate Agent

Connecting with an agent before you start looking is generally worthwhile. A good one brings local market knowledge, offer strategy, and familiarity with the transaction mechanics.

Interview a few. Ask about their experience with first-time buyers specifically, their familiarity with the neighborhoods you’re targeting, how they communicate, and their availability. Referrals from people you trust are a reasonable starting point, as is your own research.

Making an Offer

Your agent will help you structure an offer covering price, contingencies, closing timeline, and other terms. Sellers may accept, counter, or decline, and negotiation is normal.

Here’s where first-time buyers most often create problems for themselves: once you’re under contract, your financial profile needs to stay stable. Financing a car, opening a credit card, changing jobs, moving money between accounts without documentation, or taking on new debt can all affect underwriting — sometimes significantly, and sometimes days before closing.

Before making any significant financial move during the process, ask your loan officer first. A quick conversation is far easier than unwinding a problem in final underwriting.

Closing

The final stretch typically includes completing underwriting, verifying documentation, satisfying property-related requirements, reviewing closing documents, and arranging funds for closing.

You’ll receive a Closing Disclosure before signing that details your final loan terms and costs. Read it, compare it against your Loan Estimate, and ask about anything that doesn’t match your expectations. This is the moment for questions — not after signing.

Your New Home

Once the transaction closes and ownership transfers, you’re a homeowner.

All financing is subject to underwriting, income and asset verification, property requirements, and applicable lender and program guidelines. If you’re thinking about buying your first home, we’re glad to walk through the programs that may be available and help you determine which options may be appropriate for your situation.