Complete Guide
Your First-Time Home
Buyer Journey
From saving your first dollar to getting your keys – follow our proven 5-step process
Start Your Journey →5
Simple Steps
6-24
Months Timeline
$10K+
Avg. Savings
100%
Free Forever
The 5-Step Process
Your Path to Homeownership
Follow this proven journey from planning to closing
1
💰 Planning & Saving
Build your down payment and understand how much you need to save. Calculate your timeline with compound interest and see exactly when you'll reach your goal.
Key Actions:
- Calculate down payment goal and timeline
- Open high-yield savings account (4-5% APY)
- Set up automatic monthly transfers
- Track progress and adjust as needed
- Research first-time buyer programs
2
💵 Understanding Costs
Learn about closing costs and total cash needed at closing. Understand buyer vs seller paid fees and avoid surprises on closing day.
Key Actions:
- Calculate total closing costs by loan type
- Compare FHA vs Conventional vs VA costs
- Budget for prepaid items and escrow
- Understand state-specific fees
- Ask about seller concessions
3
✅ Getting Pre-Qualified
Know how much you can borrow based on income, debts, and credit score. Understand your approval odds before house hunting.
Key Actions:
- Check your credit score (aim for 720+)
- Calculate DTI ratio and max loan amount
- Gather financial documents
- Get pre-qualification letter from lender
- Compare rates from multiple lenders
4
⚖️ Optimizing Your Position
See how paying off debts can dramatically increase your buying power. Sometimes waiting 3 months to pay off a car loan is worth it!
Key Actions:
- Calculate exact impact of each debt
- Identify which debts to pay off first
- Pay down credit cards below 30% utilization
- Consider paying off car or student loans
- Improve credit score by 20+ points
5
🏠 House Hunting
Compare renting vs buying and start viewing homes. Understand true monthly costs and make confident offers.
Key Actions:
- Compare rent vs mortgage payment
- Work with experienced real estate agent
- View homes in target neighborhoods
- Make competitive offers with confidence
- Schedule professional home inspection
Your Toolkit
5 Free Calculators
Everything you need for your journey
Down Payment Savings
Calculate timeline to save your down payment with compound interest
Closing Costs
Estimate total cash needed at closing by loan type
Pre-Qualification
Check approval odds and maximum loan amount
Debt Impact
See how debts affect your home buying power
Rent to Mortgage
Convert your rent to affordable home price
Common Questions
Frequently Asked Questions
You can buy with as little as 3-3.5% down on conventional and FHA loans. However, 20% down avoids PMI and gets better rates. On a $400K home: 3.5% = $14K, 10% = $40K, 20% = $80K. VA and USDA loans require 0% down for qualified buyers.
The entire journey typically takes 6-18 months from starting to save until closing. Breakdown: Saving (6-24 months), Pre-approval (1-2 weeks), House hunting (1-3 months), Offer to closing (30-45 days). If you already have savings, you can buy in 2-4 months.
Minimum scores: FHA = 580, Conventional = 620, VA = 620, USDA = 640. However, 740+ gets the best rates. Every 20 points can save you 0.25-0.5% on your rate, which equals $50-100/month on a $300K loan.
Often yes! Your DTI ratio determines buying power. Paying off $400/month in debts can increase your buying power by $30,000-40,000. Use our Debt Impact Calculator to see exactly how each debt limits your buying power.
Generally buy if: staying 5+ years, rents are high, you want to build equity, and you have stable income. Keep renting if: moving soon, saving for larger down payment, job instability, or home prices are very high compared to rent.
Ready to start your journey?
Begin with Step 1 and work through our proven process
Start Step 1: Save for Down Payment →