🏠 First Time Buyer

How much money do I need?

Think of it like this: You need money for three things. First, the down payment - that's like the first chunk you pay (usually 3-20% of the home price). Second, closing costs - these are fees for paperwork, inspections, and other boring stuff (usually 2-5% of the home price). Third, an emergency cushion - keep some money left over for surprise repairs or moving costs.

What about my credit score?

Your credit score is like a report card for how you handle money. Lenders use it to decide if they'll give you a loan. Good news: You don't need a perfect score! Most lenders are happy with 620 or above. If yours is lower, that's okay - there are still options, and you can work on raising it.

Quick Example

If you're buying a $300,000 home with 5% down, you'd need: $15,000 down payment + $9,000 closing costs + $5,000 cushion = $29,000 total to feel comfortable.

What's the difference?

• Pre-qualified = "Based on what you told us, you MIGHT be able to borrow this much" (quick, easy, not super useful)
• Pre-approved = "We checked everything and YES, we'll lend you this much" (takes longer, but WAY more powerful)

What You'll Need

• Recent pay stubs (last 2 months)
• W-2s or tax returns (last 2 years)
• Bank statements (last 2-3 months)
• Photo ID
• List of your debts (car loans, student loans, credit cards)

Make a "Must Have" vs "Nice to Have" List

Before you start scrolling through listings, get clear on what you actually need versus what would just be cool to have.

Don't Skip the Inspection!

When you find a home you love, hire a professional inspector (costs $300-500). They'll check for problems you can't see - like bad plumbing, roof issues, or electrical problems. This could save you thousands later!

What happens next?

1. You make an offer - Include how much you'll pay, what stays with the house (appliances, etc.), and any conditions
2. They respond - They can accept, reject, or counter (suggest a different price)
3. You negotiate - Go back and forth until you agree (or walk away)
4. You're under contract! - Once both sides agree and sign, you move to closing

Pro Tip

In hot markets, you might face competition. Don't let emotions make you overpay! Stick to your budget and remember: there will always be other homes.

Timeline: From Offer to Keys

• Day 1: Offer accepted, you're under contract
• Week 1: Home inspection
• Week 2-3: Appraisal and finalizing loan
• Week 4: Final walkthrough (make sure nothing changed)
• Week 4-6: Closing day - YOU'RE A HOMEOWNER! 🎉

After You Get the Keys

Change the locks, get homeowners insurance sorted, set up utilities, and start a home maintenance fund. Aim to save 1-2% of your home's value each year for repairs and upkeep.