Buying your first home is exciting and overwhelming. Understanding mortgage basics helps you make informed decisions and avoid costly mistakes. Here's what every first-time buyer needs to know.
Your credit score is critical. Aim for 640+. If your score is below 620, work on improving it before applying. Even small improvements can save thousands in interest.
FHA loans: 3.5% down. Conventional: 5-20% down. Don't have 20%? Mortgage insurance (PMI) covers the difference. Down payment assistance programs are available for Arizona first-time buyers.
Get pre-approved before house hunting. It shows you're serious and speeds up your offer when you find the right home.
Calculate your debt-to-income ratio. Most lenders want to see 43% or less. Use a mortgage calculator to estimate monthly payments including property taxes and insurance.
Closing costs typically run 2-5% of the loan amount. That's $5,000-$25,000 on a $500,000 home. Budget accordingly.
Work with a real estate agent and lender who understands first-time buyer challenges. Expert guidance prevents expensive mistakes.
Ready to become a homeowner? Let's get you pre-approved. Schedule a free consultation or apply online.