I want to buy my first home
You don't need a perfect score or 20% down — you need a plan. These guides go in order: how to know you're ready, the credit score lenders really want, pre-qualified vs. pre-approved, the FHA, VA and USDA loans built for buyers with less saved, free and forgivable down payment help, the closing costs nobody warns you about, and the HUD-approved counselor who can walk you through all of it for free.
Your reading path
- 1Am I ready to buy a home? A checklist for would-be buyersOwning a home is a goal for a lot of people, but how do you know when you’re really “ready?” Ready doesn’t necessarily mean that you need a perfect credit score or a pile of cash. Instead, you need a few things to line up: regular income, limited debt, some savings, and the right monthly payment.
- 2What credit score do you need to buy a house?Your credit score is one of the first things a mortgage lender checks. It affects everything from whether you're approved to which loans you can get and even how much you'll pay in interest over the life of the loan. The good news is that the bar is lower than many people think.
- 3Pre-qualified vs. pre-approved: what each meansThinking about buying a home? You'll hear two terms a lot: pre-qualified and pre-approved. They sound pretty similar, and some lenders use them loosely, but they mean different things.
- 4FHA, VA, and USDA loans: home loans for buyers with less savedThink you need 20% down to buy a home? Three government-backed loan programs may change your mind. FHA, VA, and USDA loans are designed for buyers with less in savings, as well as those with lower credit scores or modest incomes.
- 5Down payment assistance: free and forgivable money for first-time buyersSaving for a down payment is the biggest challenge most would-be homeowners face. What many people don't know is that thousands of programs across the country can help cover it, sometimes with money you never have to pay back.
- 6Closing costs: the money you need beyond the down paymentPlenty of first-time buyers save hard for a down payment, then get surprised when they get to closing and realize they need more money. We’re talking about closing costs, additional fees/expenses that come with getting a mortgage and transferring a home into your name. They can add up to thousands of dollars, so it pays to plan.
- 7How a HUD-approved housing counselor can help you buyBuying your first home means learning a whole new language. You’ll discover the joy of escrow, points, DTI, and PMI, to name just a few topics. However, you don't have to figure it out alone. HUD-approved housing counselors offer free or low-cost guidance to help you.
Related questions
Common questions people ask along this path.
Do I need 20% down?
No, plenty of buyers put down much less. A smaller down payment usually means paying mortgage insurance, though.
Can I buy a home with student loans?
Yes, lenders count your student loan payment in your DTI, but plenty of buyers have them.
Should I talk to a lender even if I'm not ready?
It can help. A lender or housing counselor can review your finances and tell you what to fix first. Talking to one doesn't commit you to anything.
Can I buy a home with no credit score?
Sometimes. Some lenders can use alternative records, like rent, utility, and phone payments, especially for FHA loans.
Does a co-borrower's score matter?
Yes, lenders usually look at both borrowers' scores, and the lower one often counts the most.
How long does it take to raise my score?
It depends on the problem. Paying down balances can help within a month or two, once the new balances are reported. Recovering from late payments or collections usually takes longer, often a year or more.
Can I be denied after pre-approval?
Yes, a low appraisal, a job change, new debt, or problems found in underwriting can all lead to a denial.
Does pre-approval cost money?
Not usually. Most lenders don't charge for it.
What if my pre-approval letter expires?
Ask your lender to update it. You'll usually send newer pay stubs and bank statements, and the lender may pull your credit again.
Can I use these loans for a second home or rental?
No, FHA, VA, and USDA loans are for homes you'll live in as your main residence.
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