Buying your first home is one of the most exciting—and intimidating—milestones of adulthood. Whether you’re a millennial finally ready to settle down or a Gen Z buyer entering the housing market early, the mortgage process can feel overwhelming without a roadmap.
This step-by-step guide will walk you through everything you need to know, from getting pre-approved to closing on your dream home.
1. Check Your Credit Score and Report
Before anything else, check your credit. Lenders use your FICO score to assess your eligibility and determine your interest rate. You can get a free credit report annually at AnnualCreditReport.com.
Pro Tip: Aim for a score of 620 or higher for conventional loans. A higher score may unlock better rates and lower down payment requirements.
2. Set a Realistic Budget
Owning a home involves more than just the mortgage payment. Don’t forget to account for:
- Property taxes
- Homeowner’s insurance
- HOA fees (if applicable)
- Utilities and maintenance
Use an online affordability calculator to estimate your price range based on income, debts, and savings.
3. Get Pre-Approved for a Mortgage
Pre-approval shows sellers you’re serious—and financially ready. It also gives you a clear picture of your borrowing power and interest rate.
To get pre-approved, you’ll need:
- Proof of income (W-2s, pay stubs, tax returns)
- Bank statements and assets
- Employment verification
- Credit check
Working with a loan advisor at Ensure Lending can simplify this process and help you explore the best loan options for first-time buyers.
4. Research First-Time Buyer Programs
Many states and local governments offer assistance for first-time buyers, including:
- Down payment assistance grants
- Low-interest rate programs
- FHA loans with low down payments
- USDA and VA loans (if eligible)
Our team at Ensure Lending can help match you with the right programs for your financial situation.
5. Compare Mortgage Options
Not all loans are created equal. You’ll want to understand:
- Fixed-rate vs. adjustable-rate mortgages (ARMs)
- Loan terms (e.g., 15-year vs. 30-year)
- Private Mortgage Insurance (PMI) if your down payment is under 20%
We’ll help you compare rates and loan types to find the best fit.
6. Shop for Your Dream Home
With your pre-approval in hand, you’re ready to shop confidently. Connect with a real estate agent who understands your needs, especially if you’re a first-time buyer.
Tip: Don’t fall in love with a home that’s outside your pre-approved range.
7. Make an Offer and Get a Home Inspection
Once you find the right home, your agent will help you submit an offer. After acceptance, schedule a home inspection to uncover any issues before moving forward.
If problems arise, you can renegotiate or walk away.
8. Finalize the Loan and Close
You’ll work with your lender to complete underwriting and finalize the loan. At closing, you’ll:
- Review and sign documents
- Pay closing costs (typically 2–5% of the home price)
- Get your keys!
Welcome to homeownership!
