First Time Home Buyers Program...Everything You Need to Know

Q: What is considered a first-time home buyer?

A: Generally, a first-time home buyer is someone who has not owned a primary residence in the past three years. Many loan programs and assistance programs are available specifically for first-time buyers.

Q: How much money do I need to buy my first home?

A: The amount varies depending on the loan program, but some buyers qualify with as little as 3% down. There may also be down payment assistance programs available.

Q: Do I need perfect credit to buy a home?

A: No. Many buyers qualify with less-than-perfect credit. A lender can review your situation and help determine which loan options may be available.

Q: What is a mortgage pre-approval?

A: A pre-approval is a lender's estimate of how much home you may qualify to purchase. It helps you understand your budget and strengthens your offer when buying a home.

Q: How long does it take to buy a home?

A: Most transactions close within 30 to 45 days after an offer is accepted, although timelines can vary.

Q: What costs should I expect besides the down payment?

A: Buyers should plan for closing costs, inspections, appraisal fees, homeowner's insurance, and moving expenses. Your lender can provide a detailed estimate.

Q: What is earnest money?

A: Earnest money is a deposit that shows the seller you're serious about purchasing the home. It is typically applied toward your purchase at closing.

Q: Should I get a home inspection?

A: Absolutely. A home inspection can identify potential issues before closing and help you make an informed decision.

Q: How do I know how much house I can afford?

A: Your lender will review your income, debts, credit, and assets to determine a comfortable price range and monthly payment.

Q: Can I buy a home if I still have student loans or car payments?

A: Yes. Lenders look at your overall debt-to-income ratio, not just one specific debt.

Q: What's the difference between being pre-qualified and pre-approved?

A: Pre-qualification is a basic estimate, while pre-approval involves verifying financial information and carries more weight with sellers.

Q: What is escrow?

A: Escrow is the process where a neutral third party manages funds and documents until all conditions of the sale are met.

Q: Is now a good time to buy a home?

A: The best time to buy depends on your financial situation, goals, and readiness. Building equity and securing a home that fits your needs are often more important than trying to perfectly time the market.

Q: What's the first step to buying a home?

A: The first step is speaking with a trusted real estate agent and lender to create a plan, get pre-approved, and begin your home search with confidence.