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.