The First-Time Homebuyer Guide

Start with a comfortable budget, not a maximum price

A pre-approval tells you what you may be able to borrow. It does not tell you what you will be comfortable paying every month. Those are two different numbers, and the second one matters more to your daily life.

Begin with the total monthly payment you would feel good about — principal, interest, taxes, insurance, any mortgage insurance, and association dues if they apply — and work backward toward a price range from there.

Prequalification versus a documented pre-approval

A prequalification is an early estimate based on information you share verbally or through a quick form. It is useful for orientation and little else.

A documented pre-approval follows a review of your income, credit, assets, and debts. It carries far more weight with sellers because it reflects verified information rather than a rough conversation.

What lenders generally review

• Income and how stable or variable it is
• Employment history and how it is documented
• Credit history, payment patterns, and balances
• Monthly debt obligations
• Assets available for down payment, closing costs, and reserves
• The property itself, including type, condition, and appraised value
• Loan program eligibility rules that apply to your situation

The upfront cash categories buyers forget

• Down payment, which varies by program and structure
• Closing costs, including lender, title, and recording items
• Prepaid items such as interest, taxes, and homeowners insurance
• Inspections you choose to order
• Reserves, meaning money left after closing that some programs expect

Working with a real estate agent

Your agent represents you in the search, the offer, and the negotiation. Your loan officer handles the financing. The two roles work best when they are talking to each other early rather than at the deadline.

Share your pre-approval details with your agent so offers stay inside a range you can actually finance.

From offer to closing day

• Your offer is accepted and you go under contract
• An appraisal is ordered to evaluate the property's value
• Underwriting reviews your documentation and the property file
• You receive a Closing Disclosure outlining final terms and costs
• You review, sign, and complete closing

Do not change your financial picture mid-process

Opening a new credit account, financing furniture, changing jobs, or moving large sums between accounts can all affect your approval — sometimes days before closing.

None of these are forbidden. They simply need a conversation first so the file can be documented correctly.