The Complete Roadmap to Buying Your First Home

Buying your first home is exciting but overwhelming. From saving for a down payment to navigating mortgages, inspections, and closing, the process has many moving parts.

This roadmap breaks down the homebuying journey into clear, manageable steps — helping you move confidently from financial prep to holding your keys.

Key Takeaways

Low Down Payments Work:

Most first-time buyers put down less than 10%. FHA loans require only 3.5%, while VA and USDA loans offer 0% down options.

Getting Pre-Approved is Essential:

Get pre-approved before house hunting to demonstrate to sellers that you're serious and understand your true budget.

First-Time Programs Save Money:

Down payment assistance, FHA/VA/USDA loans, as well as Mortgage Credit Certificates, can make homeownership more accessible.

The Loan Estimate is the Key to Your Negotiating Power:

This standardized disclosure enables you to compare lenders and negotiate more favorable terms.

💡 Pro Tip: Instead of applying with multiple lenders (multiple credit pulls, endless spam), upload one Loan Estimate to Fincast. Vetted lenders compete for your business — better rates, lower fees, no extra credit checks.

Step 1: Get Your Finances Ready 💰

Check Your Credit

Your credit score is how lenders determine your level of financial responsibility, and it directly impacts your mortgage rate and the type of mortgage program you qualify for. Pull your free credit reports from www.annualcreditreport.com and check your credit history.

To maximize your credit score:

• Dispute errors

• Make all payments on time

• Pay down balances

• Avoid applying for new credit

Save Smart

You don't need a 20% down payment. Most first-time buyers make down payments of less than 10% and still get approved.

Your down payment isn’t the only expense to consider. When planning to buy your first house, be sure to budget for:

• Down payment (3-9% typical)

• Closing costs (2-5% of purchase price)

• Emergency fund (3-6 months expenses)

• Move-in expenses

Know Your Budget

Don’t rely on what you qualify for on paper. See how realistic the payment is in your everyday budget. Consider “practicing” having a mortgage by saving the monthly payment amount for a few months and see how it feels within your budget. Remember: your payment includes principal, interest, taxes, insurance, HOA fees, and maintenance, which, for most homeowners, is approximately 1% of home value each year, as a general rule of thumb.

Step 2: Explore Loan Options and Get Pre-Approved 🏦

Learn the Common Loan Types

The right loan program for you depends on your credit score and the size of your down payment. The most common loan types include:

Conventional: 3% down minimum (first-time buyers only), 620+ credit, PMI required if less than 20% down

FHA: 3.5% down, 580+ credit, mortgage insurance required regardless of the size of the down payment

VA: 0% down, no PMI, for eligible veterans, surviving spouses, and active military

USDA: 0% down, for low to moderate-income households buying a home in a rural area according to USDA standards

Get Pre-Approved (Not Pre-Qualified)

Pre-approval means a lender verified your finances and committed to lend you a specific amount, based on specific conditions, including the property value and condition, when you find a home.

A pre-approval offers the following benefits:

• Shows sellers you're serious

• Gives you a firm budget

• Speeds up the process

• Strengthens your negotiating position

Explore First-Time Buyer Programs

Research down payment assistance through your state housing agency, Mortgage Credit Certificates (tax credits), and special programs like Good Neighbor Next Door (50% off for teachers, law enforcement, firefighters, EMTs).

Step 3: Find Your Home and Make an Offer 🏡

Work with a Buyer's Agent

A good agent helps you find homes, negotiate, and guide you through the process — usually at no direct cost (the commission is paid by the seller).

Define Your Priorities

List non-negotiables (i.e., location, bedrooms, budget) vs. nice-to-haves (i.e., yard, finishes). Be realistic and flexible if you’re buying in competitive markets.

Make a Strong Offer

Include earnest money (1-3% of price), competitive pricing based on comps, and smart contingencies:

• Inspection contingency:  Allows you to renegotiate the deal or cancel the contract if the inspector finds major issues

• Financing contingency: Allows you to cancel the contract if you don’t get final approval on your financing by a specified date

• Appraisal contingency: Allows you to cancel the contract or renegotiate the deal if the appraisal value comes in low

Step 4: Choose a Lender and Apply for the Loan

Choose your Lender

Compare the pre-approvals you received in step 2 and choose the lender that you feel is the best fit for you at this time. Complete a full loan application, including the property address and details, so the lender can issue your Loan Estimate.

Compare Offers

Using your Loan Estimate, get offers from other lenders. You can do this yourself by contacting lenders, applying for a loan, and sharing your original Loan Estimate to get other offers.

If you prefer to automate the process, use Fincast. Simply upload your Loan Estimate to Fincast, and its algorithm instantly shares the important details anonymously with vetted lenders to try to find you a better offer. It takes only seconds, and there is no hard credit pull or sharing of personal information, so your credit isn’t affected, and your phone doesn’t ring off the hook with spam calls.

Choose the Best Offer

Within a short time, select the lender with the most competitive offer and proceed with the loan. Remember, the clock starts ticking the moment you sign a purchase contract, so the faster you upload your Loan Estimate to Fincast and choose a lender, the more likely you are to meet your contracted deadlines.

Step 5: Order Inspections and Appraisals 🔍

Order a Home Inspection

Hire a professional inspector within days of going under contract. They'll examine structure, roof, electrical, plumbing, HVAC, and more.

Red flags to watch for:

• Foundation or structural issues

• Roof damage or leaks

• Electrical hazards

• Major plumbing problems

• Water damage or mold

Typical options if your inspector spots problems: Request repairs, negotiate a credit, lower the price, accept as-is, or walk away using your contingency.

Order an Appraisal

After choosing a lender and loan program, they will order a home appraisal to verify the home’s fair market value. If the appraiser determines the home’s fair market value is lower than the purchase price offered, you can:

• Renegotiate the price

• Increase your down payment

• Challenge the appraisal

• Cancel the contract

Don’t Change any Qualifying Factors

During the processing of your loan (and even the months leading up to it, be mindful of the following to prevent issues with your loan:

• Don't change jobs

• Don’t open new credit lines or loans

• Don’t miss payments on existing debts

• Don’t make any large withdrawals or deposits in your bank accounts

Step 6: Close the Deal 📝

Review Your Closing Disclosure

You'll receive your Closing Disclosure three days before closing. It displays your final loan terms, including the interest rate, monthly payment, and closing costs. Compare it to your Loan Estimate — question any fees or figures that look significantly different than your Loan Estimate..

Attend the Closing

When the big day arrives, take a deep breath and make sure you have your ID and closing funds (wire transfer or cashier's check).

At the closing, you’ll sign a good number of documents, including:

• Promissory note (promise to repay)

• Mortgage/deed of trust (lender's lien)

• Deed (ownership transfer)

• Closing Disclosure

• Signature Affidavit

• Various other disclosures

Read everything carefully and ask questions as needed. Don't let anyone rush you. Once you finish signing, the lender funds the loan, documents are recorded, and you get your keys! 🎉

Step 7: Thrive as a Homeowner 🔑

Create a Budget for Ongoing Costs

Your mortgage payment is only a small piece of the puzzle. There are plenty of other expenses to consider and plan for, so you don’t end up in over your head:

• Monthly: mortgage, HOA fees, utilities, maintenance savings

• Annual: property taxes and insurance (if you did not set up an escrow account)

• As-needed: repairs, lawn care, improvements

Maintain Your Investment

You invested a lot of time, money, and work in your home, so make sure you protect it by:

• Changing HVAC filters monthly or as recommended by your system

• Cleaning gutters seasonally

• Servicing major systems annually

• Saving a maintenance fund

Why Smart Buyers Use Fincast After Getting Their Loan Estimate

While you can shop your Loan Estimate yourself, it’s time-consuming, and you may not find the best deal on the market. Borrowers who use Fincast enjoy the following benefits:

• No additional credit checks

• Instant opportunities to accept a better deal

• Saves time and the headache of shopping around

• Protects your privacy

• Increases the chance of potential savings

Use Fincast after receiving your first Loan Estimate, when rate locks expire, or if you get a revised estimate. It's mortgage shopping made simple.

FAQs

1. How much do I really need for a down payment?

It depends on the loan program; most first-time buyers don’t need 20% down. FHA programs allow 3.5% down payments, and VA and USDA programs offer 0% down payments for qualified borrowers.

2. What credit score do I need?

Conventional loans typically require 620+. FHA allows as low as 580 with 3.5% down.

3. Should I get pre-qualified or pre-approved?

Always get pre-approved. Pre-qualification is an estimate; pre-approval means the lender verified your finances and is likely to fund your loan if you meet the stated conditions.

4. What if the appraisal comes in low?

You can renegotiate the price, increase your down payment, challenge the appraisal, or walk away if you have an appraisal contingency on your contract.

5. How does Fincast help me save?

Upload one Loan Estimate, and vetted lenders compete to try to beat your terms — no additional credit pulls or spam.

Bottom Line

Buying your first home is a journey that requires:

Financial prep — build credit, save a down payment, create a realistic budget

Smart financing — explore loan options, get pre-approved, leverage first-time programs

Strategic house hunting — work with professionals, make strong offers with contingencies

Thorough due diligence — never skip inspections or appraisals

Confident closing — review documents carefully, understand what you're signing

Responsible ownership — budget for ongoing costs, maintain your investment, build equity

As soon as you receive a Loan Estimate, use Fincast to ensure you're getting the best mortgage deal — because even a 0.25% better rate can save tens of thousands over your loan's life.

Pro Tips (Save These!)

• Down payment doesn't have to be 20% — most first-time buyers put down less than 10%

• Always get pre-approved before house hunting

• Explore first-time buyer programs — grants and assistance exist

• Never waive your inspection contingency

• Upload your Loan Estimate to Fincast for better rates

• Budget 1% of the home value annually for maintenance (or the average for the area)

• Read every closing document carefully — don't rush

• Change locks immediately after moving in

Action Checklist

• Check credit score and correct errors

• Calculate the true budget and start saving

• Research first-time buyer programs

• Get pre-approved with a reputable lender

• Upload Loan Estimate to Fincast

• Find a trusted buyer's agent

• Make a list of must-haves vs. nice-to-haves

• Schedule a professional home inspection

• Review the Closing Disclosure 3 days before closing

• Do a final walk-through before signing

• Close confidently and get your keys!

👉 Ready to buy your first home with confidence? When you receive your Loan Estimate, upload it to Fincast and see if vetted lenders can offer you more competitive terms.