The first-time homebuyer’s roadmap.

1. Figure out what you can comfortably afford

Start with your budget, not a listing site. A common guideline lenders use is the 28/36 rule: aim to keep your housing payment around 28% of your gross monthly income, and your total debt payments under about 36%. It’s a starting point, not a hard limit — but it keeps you honest.

Play with the numbers on our affordability calculator and payment calculator before you talk to anyone. Remember the payment isn’t just principal and interest — it also includes property taxes, homeowners insurance, and sometimes mortgage insurance and HOA dues.

2. Check and understand your credit

Your credit profile is one of the biggest levers on your rate. You don’t need perfect credit to buy — many programs work with scores well below “excellent” — but knowing where you stand helps. Pull your report, look for errors, and avoid opening new debt right before you apply.

3. Save for the down payment — and closing costs

The 20%-down myth stops a lot of would-be buyers. Many qualified buyers put down as little as 3% on conventional loans, and some government-backed programs go lower or to zero. Down-payment assistance may be available in Arizona, California, Colorado, and Nebraska too. Just budget for closing costs (typically a few percent of the price) on top of the down payment.

4. Get pre-approved before you shop

A pre-approval tells you your real price range and shows sellers you’re serious — which matters in a competitive market. Getting an initial rate estimate uses a soft credit inquiry that doesn’t affect your score.

5. Shop, offer, and go under contract

With your pre-approval in hand, tour homes in your range and make an offer. Once it’s accepted, you’re “under contract,” and the loan, appraisal, and inspection process begins.

6. Underwriting, appraisal, and closing

Your lender verifies your details, an appraiser confirms the home’s value, and — assuming all’s well — you get a “clear to close.” At closing you’ll sign, bring your funds, and get the keys. A good officer keeps you posted at every step so there are no surprises.

Common first-timer questions

The short version: know your budget, protect your credit, get pre-approved, then shop. Do those four and the rest is mostly paperwork we handle for you.

This guide is general education, not financial advice or a commitment to lend. Programs, guidelines, and availability vary and change over time.