The First-Time Homebuyer Guide

1Check Your Financial Health

Before looking at Zillow, look at your bank accounts. You need two things: a qualifying credit score (ideally 620+) and cash for a down payment and closing costs. Pull your free annual credit report and check for errors.

2Get Pre-Approved

A pre-qualification is a guess; a pre-approval is a guarantee. We will pull your credit, verify your W2s and bank statements, and issue a formal letter stating exactly how much you can borrow. In a competitive market, no seller will accept your offer without this letter.

3Find a Real Estate Agent

As a buyer, you generally don't pay the real estate agent's commission (the seller does out of their proceeds). Therefore, you should always use a licensed Realtor to represent your interests, negotiate the price, and handle the contracts.

4Make an Offer & Negotiate

When you find the house, your agent will draft a purchase agreement. You will need to submit an Earnest Money Deposit (usually 1-2% of the price) to show you are serious. If the seller accepts, you are "under contract."

5Inspection & Appraisal

You hire a home inspector (around $400-$600) to find physical defects. If they find major issues, you can ask the seller to fix them, renegotiate the price, or walk away and get your earnest money back.

Meanwhile, the lender orders an appraisal to ensure the home is actually worth the price you agreed to pay.

6Underwriting & Clear to Close

The underwriter reviews your entire file one last time. Do NOT open new credit cards, buy a car, or change jobs during this period. Once approved, you receive the magical words: "Clear to Close."

7Closing Day

You wire your remaining down payment and closing costs to the title company, sign a massive stack of papers (usually takes an hour), and receive the keys to your new home.