First-Time Homebuyer? 5 Things You Need to Know

Buying your first home is an exciting milestone, but it can also be overwhelming. Here are five essential things every first-time homebuyer should know:

1. Check Your Credit Score

Your credit score significantly impacts your mortgage rate and loan approval. Aim for a score of 620 or higher for conventional loans, or 580+ for FHA loans.

2. Save for a Down Payment

While 20% down is ideal to avoid PMI, many programs allow lower down payments. FHA loans require as little as 3.5% down for qualified buyers.

3. Get Pre-approved for a Mortgage

Pre-approval shows sellers you're serious and helps you understand your budget. It also speeds up the closing process once you find a home.

4. Budget for Additional Costs

Beyond the down payment, factor in closing costs (2-5% of home price), moving expenses, and immediate home improvements or repairs.

5. Work with a Real Estate Agent

A good agent can guide you through the process, help negotiate the best price, and ensure all paperwork is handled correctly.