The First-Time Buyer's Blueprint

Before You Do Anything Else, Know Your Numbers

The single biggest mistake first-time buyers make is falling in love with a home before knowing what they can afford. Don't do this. Get the numbers first.

Your credit score matters more than you think:

• 760+ = best rates available
• 700–759 = good rates, solid options
• 640–699 = FHA loan territory, higher rates
• Below 620 = you may need to wait and rebuild

Pull your free credit report at AnnualCreditReport.com. Look for errors, they're more common than you think and can cost you thousands in higher interest rates.

Your debt-to-income ratio (DTI): Lenders look at your monthly debt payments divided by your gross monthly income. Most conventional loans want this under 43%. FHA loans allow up to 50% in some cases.

Your savings: You need more than just a down payment. Budget for:

• Down payment: 3–20% of purchase price depending on loan type
• Closing costs: 2–5% of purchase price
• Moving costs: $1,000–$5,000 depending on distance
• Immediate repairs or updates: budget at least $2,000–$5,000
• 3–6 months emergency fund after closing

Get Pre-Approved Before You Look at a Single House

Pre-approval is not the same as pre-qualification. Pre-qualification is a guess. Pre-approval is a real review of your financials by a lender, and it's what sellers actually respect.

What you'll need:

• Last 2 years of tax returns (W-2s or 1099s)
• Last 2 months of bank statements
• Last 30 days of pay stubs
• Government-issued ID and Social Security number

Loan types to know:

• Conventional: 3–20% down, best rates for 700+ credit scores
• FHA: 3.5% down, more flexible credit requirements, requires mortgage insurance
• USDA: 0% down for eligible rural/suburban areas, many Emerald Coast and Atlanta suburban communities qualify
• VA: 0% down for veterans and active military

Important: Getting pre-approved does a "hard pull" on your credit. Multiple lenders pulling your credit within a 45-day window counts as ONE inquiry, so shop around without fear.