Frequently Asked Questions from First-Time Home Buyers — Answered

Buying your first home is a milestone filled with excitement, dreams, and—let’s face it—a fair amount of confusion. From securing a mortgage to understanding closing costs, first-time home buyers often have a laundry list of questions. If you’re about to take the plunge into homeownership, you’re not alone. Below, I answer some of the most frequently asked questions from people just like you.

1. How much house can I afford?

This is often the first—and most crucial—question. A general rule of thumb is that your monthly housing costs (including mortgage, property taxes, insurance, etc.) should not exceed 28–30% of your gross monthly income. However, lenders also look at your overall debt-to-income ratio, typically preferring it to be under 43%.

Tip: Use online mortgage calculators and get pre-approved by a lender to get a clearer picture of your budget.

2. What is mortgage pre-approval and why is it important?

Mortgage pre-approval is a letter from a lender stating how much they’re willing to lend you, based on your financial credentials. It shows sellers that you’re a serious buyer and can speed up the process when you find a home you love.

Pro Tip: Don’t confuse pre-approval with pre-qualification. Pre-approval is more rigorous and carries more weight.

3. What kind of mortgage should I get?

There are several types of mortgages, including:

• Conventional Loans
• FHA Loans (great for low down payments)
• VA Loans (for veterans)
• USDA Loans (for rural properties)

Each has its pros and cons depending on your financial situation, credit score, and location.

4. How much should I save for a down payment?

Traditionally, a 20% down payment was standard, but today many lenders allow as little as 3–5% down, especially with FHA or first-time buyer programs. That said, putting down less than 20% usually means you’ll have to pay private mortgage insurance (PMI).

5. What are closing costs and how much should I expect to pay?

Closing costs typically range from 2% to 5% of the home’s purchase price and include fees for the loan, appraisal, inspection, title insurance, and more. These are due at the time you finalize the home purchase.

6. Should I get a home inspection?

Absolutely. A home inspection can reveal hidden problems like structural issues, plumbing or electrical concerns, or a failing roof. It can save you thousands of dollars and help you negotiate repairs before closing.

7. What’s the difference between a buyer’s agent and a seller’s agent?

• Buyer’s Agent: Represents you, the buyer, in the transaction. They help you find homes, make offers, and negotiate terms.
• Seller’s Agent (Listing Agent): Represents the person selling the home.

8. How long does the home buying process take?

On average, it can take 30 to 60 days from the time your offer is accepted to closing, though this varies depending on your financing, negotiations, and inspections.

9. What if my offer is rejected?

It’s common, especially in a competitive market. Don’t get discouraged—use feedback from your real estate agent to strengthen your next offer. Sometimes, it just means adjusting your budget or being flexible on non-essential features.

10. Are there any first-time home buyer programs or grants I should know about?

Yes! Many local, state, and federal programs offer:

• Down payment assistance
• Tax credits
• Reduced interest rates

Check with your lender or local housing authority to see what’s available in your area.

Final Thoughts

Buying your first home is a learning experience, and asking questions is the best way to feel confident and informed. Work with experienced professionals—like a trusted real estate agent and lender—who can guide you every step of the way. With the right knowledge and support, you’ll be unlocking the door to your new home in no time.

Thinking about buying your first home? Contact us for a free first-time buyer consultation and get any other questions you have answered! 🏡