Guide To Buying Your First Home < Pro 2026 >

: A professional inspection identifies potential structural or safety issues (red flags include foundation problems or major water damage) SoFi . An appraisal ensures the home's value matches the sale price for the lender Own Up.

: Review your credit score, as it significantly impacts your mortgage interest rates. A score of at least 620 is typically required for conventional loans, though FHA loans may accept scores as low as 500-580 Yahoo Finance , TruStage .

Making large purchases (like a new car) or opening new credit accounts before closing, which can jeopardize your loan approval Vision Retirement . guide to buying your first home

: Determine a manageable monthly payment rather than just the maximum amount a bank will approve YouTube . Generally, housing costs should be roughly 25%–30% of your gross income Fannie Mae .

: Sign the final paperwork, pay your remaining closing costs, and receive the keys. This process typically takes 30–60 days after an offer is accepted TruStage. Common Mistakes to Avoid Not shopping around for multiple mortgage lenders Bankrate . A score of at least 620 is typically

: While a 20% down payment avoids private mortgage insurance (PMI), many programs allow as little as 3% or 3.5% down TruStage, Travelers Insurance . 2. Loan Pre-approval & Professionals

: Create a "wish list" (e.g., location, bedrooms, commute time) but be prepared to compromise on some "wants" for your first home TruStage. Generally, housing costs should be roughly 25%–30% of

Buying your first home is a complex process, but it can be broken down into manageable financial and logistical phases. According to Bankrate , Investopedia , and the National Association of REALTORS® , the typical journey includes these key steps: 1. Financial Preparation