2% grant
The grant itself does not need to be repaid. There is no second loan for the assistance.
First-Time Homebuyer Guide
Your First Home Starts With a Plan.
Understand your options, prepare for each step, and move toward your first home with confidence.
A clear path, one step at a time
You don’t have to know it all today.
Start at the beginning or open the step you need. Add useful tasks to your checklist, then download it when you’re ready.
Choose “Add to My Checklist” beside any task to save it. Open My Checklist to review your choices and download a PDF. No account or contact information needed.
By Troy SchurichtSales Manager · NMLS #262655
Your nine steps to home.
Open any step. Go at your pace.
01Make Your Homebuying Plan
Decide what you want and when you want to move.
What to know
Start with your reason for buying. Think about your lease, work, family needs, and how long you expect to stay. Pick a target moving month, then leave room for delays. Finding a home and closing a loan do not follow one fixed schedule.
Separate must-haves from nice-to-haves. Compare travel time, daily services, and the full cost of each area. A longer drive or higher property tax bill can change what feels affordable.
Build a team you can ask questions. A lender helps you understand financing. A real estate agent helps you compare homes and offers. An inspector checks the home’s condition. Ask each person about costs, communication, and their role before hiring them.
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02Find Your Comfortable Payment
Start with a monthly payment that fits your life.
What to know
Choose a payment that leaves money for everyday life and savings. A lender’s maximum loan amount is not the same as your comfortable budget. Review your take-home pay and spending before choosing a price range.
Your home payment can include principal (paying back the loan), interest (the cost of borrowing), property taxes, and homeowners insurance. Mortgage insurance may add a cost when the down payment is small. It protects the lender, not you.
A homeowners association, or HOA, may charge dues in addition to your mortgage payment. Add utilities, repairs, maintenance, and emergency savings to your broader budget. Taxes, insurance, and HOA dues can rise, even if your loan’s principal-and-interest payment stays the same.
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03Plan Your Upfront Cash
Understand your down payment, closing costs, and money left after moving.
What to know
Start by exploring down payment assistance. It may help with eligible upfront costs, but some assistance must be repaid. Ask which programs are offered for your location and situation before adding help to your budget.
Your down payment is the part of the home price you pay upfront. Closing costs are separate fees and other costs to finish the purchase and loan. You may also pay some taxes and insurance ahead of time. Moving costs and money kept in savings are separate needs.
Earnest money is a deposit you may pay with an accepted offer. It is usually credited toward what you owe at closing. Whether you can get it back depends on your contract and deadlines. Ask your agent before paying.
Gift funds may be allowed, but the lender must review who gave the money and how it moved. Seller contributions may cover certain permitted costs within program limits; they generally cannot replace your required down payment. Keep records and ask before moving large sums.
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04Get Your Credit Ready
Understand your credit and prepare for a mortgage.
What to know
Review your credit reports for accounts, balances, and payment history. A report is not the same as a credit score. The score shown in an app may differ from the score a mortgage lender uses.
If you find an error, follow the credit bureau’s dispute process and keep records. Make payments on time. Talk with your lender before paying off accounts, closing cards, or opening new debt. There is no guaranteed way to raise a score by a certain amount or date.
Credit requirements vary by program and lender. Your score may affect your loan choices and the money needed upfront. Lenders also review income, debts, savings, and the property. Meeting a score requirement alone does not promise approval.
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05Explore Your Loan Options
Learn which home loan options may fit your situation.
What to know
Compare help with upfront costs first, then compare the loan itself. Assistance may be paired with an eligible mortgage. It is not a separate promise that a loan will be approved. Ask for the assistance terms and the mortgage costs together.
Look beyond the down payment. Compare your own cash needed, mortgage insurance, total monthly payment, and any assistance repayment. A smaller upfront amount may come with higher ongoing costs. Ask for a Loan Estimate, a standard form that lists loan terms and estimated costs.
3.5% grant
The grant itself does not need to be repaid. There is no second loan for the assistance.
3.5% forgivable assistance
A second mortgage with no monthly payments. The balance may be forgiven after five years if program rules are met. Selling, refinancing, or transferring early may require repayment.
5% repayable assistance
A second mortgage repaid over time. Interest and monthly payments apply. Include this payment when comparing your total costs.
These are assistance amounts, not a promise of your down payment or cash needed to close. The percentage basis and eligible uses depend on the program. Availability and requirements vary by location, program, and lender. All four options are not available everywhere. Ask for the current written terms before counting on assistance.
- Conventional — as little as 3% down. Certain programs allow a small down payment. Buyer, income, property, and lender rules apply. Mortgage insurance is usually needed with less than 20% down.
- FHA — as little as 3.5% down. Credit, property, and lender rules apply. Some buyers need more upfront. FHA includes mortgage insurance costs.
- VA — for eligible buyers. Eligible veterans, service members, and some surviving spouses may buy with 0% down. Lender and property review still apply. Closing costs and a funding fee may apply; some buyers are exempt from the fee.
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06Get Ready to Shop
Prepare your documents and understand your financing before touring homes.
What to know
Preapproval means a lender has reviewed information about your finances and may be willing to offer a loan, subject to conditions. It can help you shop in a realistic price range. It is not final approval or a promise to lend on any home.
Common requests include photo ID, recent pay statements, W-2 forms, bank statements, and details about debts. The exact list depends on your situation. Share sensitive documents only through your lender’s approved secure process.
If you work for yourself, ask early about tax returns, business records, and current income documents. Business sales are not the same as income a lender can use. Keep business and personal records organized.
Choose a real estate agent and discuss your price range, priorities, and financing timeline. Ask how long your preapproval lasts and what changes you should report. The lender still needs to review the property and updated documents before closing.
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07Find a Home and Make an Offer
Compare homes and understand the offer before committing.
What to know
Compare more than the sale price. Ask about taxes, insurance, HOA dues, utilities, and repairs. A lower-priced home can cost more each month or need more work right away. Check property condition with the help of your agent and an inspector.
Review the offer with your agent before signing. Discuss the price, earnest money, proposed closing date, and what stays with the home. A contingency is a condition in the contract that may let you cancel or ask for changes. Your rights depend on the exact contract and deadlines.
Ask about inspection, financing, and appraisal conditions. Understand the risk before waiving any protection. If you request seller-paid costs, have the lender check program limits and the agent confirm what the seller accepts. A seller is not required to agree.
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08Move From Contract to Closing
Know what happens between an accepted offer and getting the keys.
What to know
Track the dates in your contract. A home inspection checks condition and can help you understand repairs. An appraisal gives the lender an opinion of value. An appraisal is not a substitute for an inspection, and neither guarantees the home has no problems.
Shop for homeowners insurance early. Ask about coverage, deductibles, and any extra protection needed for the location. Send the lender what they request promptly. New debt, job changes, or unexplained money transfers can delay the final review.
For most home purchase mortgages, you must receive a Closing Disclosure at least three business days before closing. This form lists your final loan terms and costs. Compare it with your Loan Estimate. Ask about changes, the payment, and the exact cash you must bring before signing.
Before sending closing funds, call your closing company using a trusted phone number you already verified. Do not use a number from a last-minute email. Confirm the payment method and instructions directly. If instructions suddenly change, stop and check again.
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09Settle Into Homeownership
Plan for your first months in the home.
What to know
Confirm when you may move in, then arrange utilities, locks, mail, and any needed services. Save your closing documents, insurance policy, warranties, and loan contact information in a safe place you can find later.
Make a simple maintenance plan. Learn where to shut off water and check smoke and carbon monoxide alarms. Budget for routine upkeep and larger repairs. Rebuild savings after the move instead of treating leftover cash as spending money.
Watch for your first payment instructions from your loan servicer, the company that collects payments. Verify unfamiliar messages before sharing information or paying. If taxes and insurance are paid through your mortgage account, changes in those bills can change your monthly payment. Review annual account statements and ask about changes.
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Your mortgage guide
Troy Schuricht
Sales Manager, NextGen Financial Services
Individual NMLS #262655 · Company NMLS #1686419
25+ Years of Mortgage Experience.
1,500+ Homebuyers Helped
Team production under Troy’s management as Sales Manager.
Need help with your next step? Talk with Troy.
Talk with Troy