First-time homebuyers
Buying your first home? Start here.
No dumb questions. Here's the whole process in order, what pre-approval really means, and how to read your first Loan Estimate.
Where do I start as a first-time buyer?
Start with a pre-approval conversation before you tour homes. A loan officer reviews your credit, income, debts, and savings and tells you what price range and loan types make sense. That way you shop with real numbers, your offers are stronger, and there are fewer surprises later.
- Talk to a loan officer and get pre-approved.
- Pick a real estate agent and shop in your range.
- Make an offer; once accepted, you'll get a Loan Estimate within three business days of applying.
- Appraisal, inspection, underwriting.
- Closing Disclosure at least three business days before closing.
- Close and get your keys. In Texas, file your homestead exemption.
What does pre-approval mean?
A pre-approval means a lender has reviewed your credit and financial documents and says you're likely to qualify for a certain amount, subject to conditions. It's stronger than a prequalification, which is based on what you tell the lender. Sellers and agents take pre-approved buyers more seriously.
Which loan do most first-time buyers use?
Many first-time buyers use FHA, because its credit and down payment guidelines are flexible. Conventional loans are also common, especially with stronger credit, and VA loans are a strong option for eligible veterans. The best choice depends on your credit, savings, and the home, so compare real Loan Estimates.
Read: FHA loans · Conventional · VA
How much cash do I need besides the down payment?
Plan for closing costs, prepaids, and your initial escrow deposit on top of the down payment. Prepaids include your first year of homeowner's insurance and prepaid interest. Seller credits and lender credits can reduce cash to close. Your Loan Estimate's Calculating Cash to Close table spells it all out.
Estimate yours: closing cost estimator · affordability calculator
Things first-time buyers in Texas should know
Texas has no state income tax and no real estate transfer tax, but property taxes can be a big part of your payment. After you close on a home you live in, file for the homestead exemption with your county appraisal district. Title insurance premiums in Texas are set by the state, so they shouldn't vary between title companies.
Don't do these before closing
Don't open new credit, buy a vehicle, change jobs, or move large sums of cash without talking to your loan officer first. Lenders re-check credit and employment before closing, and new debt can change your approval. If something changes, tell your loan officer right away so it can be handled.
For illustration only. Not a commitment to lend, a Loan Estimate, or an offer of credit. Your actual figures depend on your full application, credit approval, property, and the loan program. John Stafford NMLS #2470539 | GoRascalJohn powered by GoRascal Inc. NMLS #2072896. Equal Housing Opportunity.
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What people say after closing
Real words from real borrowers on my Google Business Profile.
“John came in at a time when I need someone that was honest and trustworthy. I was already working with another lender, my gut told me things didn't feel right. He offered his support and was resourceful. Never pushy but offered his assistance, if needed. The best decision I ever made! …Truly grateful for him!”
“Excellent service and most reliable person is John he helped my family and I out and made the process super easy and seamless he will definitely be my lifetime go to for all my Loan needs!”
“John made the process painless.”
Reviews from Google. Quoted verbatim; individual experiences vary.
Common questions
How long does it take to buy a house?
It depends on the market and your file. Once you're under contract, the loan process commonly takes several weeks. Getting pre-approved first speeds everything up.
Does shopping for a mortgage hurt my credit?
Credit scoring models generally treat multiple mortgage inquiries within a short shopping window as a single inquiry, so comparing a few lenders is normal.
Can family help with my down payment?
Often yes, through a documented gift. Each loan type has its own gift rules, so ask before money moves.
What if my credit isn't great?
Talk to me anyway. FHA is designed to be flexible, and if you're not ready yet I'll tell you exactly what to work on.
Free Loan Estimate review
Got a Loan Estimate? Send it to me.
Send me your Loan Estimate and I'll look it over myself. I'll tell you straight what looks off, what looks fine, and whether I can do better. If your offer is solid, I'll say so.
Before you send it: cover your Social Security number and loan number. Texas and Tennessee loans. John Stafford NMLS #2470539 | GoRascalJohn powered by GoRascal Inc. NMLS #2072896.