Buying your first home is exciting—but let’s be real, it can also feel a little overwhelming. Between paperwork, costs, timelines, and conflicting advice, it’s hard to know where to even start.
That’s why we’ve created this guide: to walk you through all things first-time homebuyer—from the “must-dos” to the “please-don’ts”—so you feel confident, informed, and totally ready to step into homeownership.
First Things First: What to Expect
The average home purchase (from pre-approval to closing) takes about 30–60 days, but the full process starts way before that. Here’s a general timeline:
- Pre-approval (before house hunting)
- House shopping & making an offer (1–8+ weeks depending on market)
- Under contract & inspection period (usually 7–10 days)
- Appraisal, underwriting & final approval (3–4 weeks)
- Closing day! (1–2 hours, then you get the keys 🎉)
First-Time Buyer Do’s
- DO Get Pre-Approved Early
Know what you can afford before falling in love with a house. It makes your offer stronger and speeds up the process. - DO Understand Your Budget
Factor in your monthly payment and the other stuff: insurance, taxes, HOA fees, utilities, and future maintenance. - DO Ask Questions
No question is too small. A good lender (like us!) will walk you through the entire process and explain every fee. - DO Choose Your Team Wisely
You’ll want a great realtor, lender, and maybe even a real estate attorney depending on your state.
First-Time Buyer Don’ts
- DON’T Make Big Purchases During the Process
No new cars, no new credit cards, no furniture splurges until after you close. - DON’T Change Jobs Without Talking to Your Lender
Even if it’s a promotion, it could delay things. - DON’T Skip the Home Inspection
Even with a new or “as-is” home, you want to know what you’re buying. - DON’T Assume You Need 20% Down
You can buy with as little as 3% down—or even zero with some government programs.
What Documents You’ll Need
To get started, lenders typically ask for:
- Last 2 years of W-2s or 1099s
- Most recent 2 months of pay stubs
- Most recent 2 months of bank statements
- Valid ID and Social Security number
- If self-employed: 2 years of tax returns & a profit/loss statement
Tip: Be ready to explain large deposits, unusual expenses, or job gaps. It’s normal—we just need a paper trail.
What Money You Need (And Where It Goes)
Here’s a general idea of what to budget for:
- Down Payment: 3%–20% depending on the loan type
- Closing Costs: 2%–5% of the purchase price
- Home Inspection: $300–$500
- Appraisal: $400–$800
- Earnest Money Deposit: 1%–2% of the offer price (goes toward closing)
- Moving & Setup Costs: Utilities, storage, furniture, etc.
Some buyers qualify for grants or down payment assistance, especially first-time buyers—ask us what’s available in your area.
Things First-Time Buyers Don’t Always Know
- You Can (and Should) Shop Around for Rates
Mortgage rate shopping within a short window won’t hurt your credit and could save you thousands. - The Seller Can Pay Some of Your Costs
You can negotiate for seller credits to help cover closing costs. - You Don’t Need Perfect Credit
There are loan options for buyers with credit scores in the low 600s—and even lower in some cases. - You Can Refinance Later
If you don’t love the rate now, focus on locking in the house. You can always refinance when rates drop.
Final Thoughts
Becoming a homeowner is a huge milestone—and it comes with a lot of paperwork, yes—but also freedom, stability, and pride. If you’re thinking about buying your first home, don’t let the process intimidate you. With the right guidance, it’s absolutely doable.
At Welcome Home Mortgage, we love helping first-time buyers feel confident and excited—not stressed. From pre-approval to handing over the keys, we’ve got your back.
Ready to get started or just want to ask a few questions?
Let’s chat! We’ll walk you through your options, help you figure out your budget, and set you on the path to owning your first home.
205.358.3423 | [email protected] | NMLS # 2662452
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