The first-time buyer guide
Your first home,
one plain step at a time.
3% down on some conventional loans
3.5% down with FHA
Closing costs 2% to 5%
The order matters. Most of the stress first-time buyers describe comes from doing step three after step four.
Know your number
Start with the monthly payment you are comfortable with, not the largest loan you qualify for. Add taxes, insurance and HOA dues to principal and interest before you decide.
Save for the down payment and closing
You may need less than you think: 3% for some conventional loans, 3.5% for FHA and 0% for eligible VA borrowers. Budget another 2% to 5% for closing costs.
Get pre-approved before you shop
A pre-approval letter shows sellers your financing is real and tells you your price range. It also surfaces credit questions while there is time to fix them.
Make an offer, then close
After your offer is accepted we lock your rate, order the appraisal and work through underwriting. Our average is 21 days from accepted offer to keys.
Down payment help exists.
Most buyers never ask.
State, county and city programs offer grants, deferred loans and closing cost help to eligible first-time buyers. Income limits, price caps and a homebuyer education class usually apply.
Program names, amounts and rules change often. We check current eligibility on your first call instead of listing programs that may have closed.
Grants
Money toward your down payment or closing costs that does not have to be repaid if you meet the program terms.
Deferred second loans
A silent second mortgage with no monthly payment, repaid when you sell, refinance or pay off the first loan.
Closing cost credits
Lender or program credits that reduce the cash you bring to closing, sometimes in exchange for a slightly higher rate.
Here is what those dollars pay for, and which ones you can shop for yourself.
Compare quotes
Usually no
Often yes
No
No
Green dot: you can shop this cost yourself. Grey dot: set by third parties or the county.
Papers.
Income
Pay stubs from the last 30 days
W-2s from the last two years
Two years of tax returns if self-employed
Offer letter if you recently changed jobs
Assets
Two months of bank statements
Retirement and investment statements
A gift letter if family is helping
Proof of your earnest money deposit
Identity and history
Photo ID for every borrower
Social Security number
Two years of addresses and landlord contacts
A short note explaining any credit events
Ask the questions you think are too basic. That is exactly what the first call is for.
No hard credit pull to start. Pre-approval is not a commitment to lend; all loans are subject to credit, income and property approval. Harborline Mortgage is a demo brokerage, NMLS # 000000 (demo). Equal Housing Opportunity.