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First-Time Homebuyer Resources
Buying Your First Home Starts With Understanding the Process
You don't need to know every mortgage term or have every number figured out before getting started. These resources can help you understand the homebuying process, explore what the numbers may look like, and learn about options that may be worth discussing.
First-Time Homebuyer Guide
A simple roadmap from "Where do I start?" to homeownership.
Step 1
Understand Your Starting Point
Review your income, monthly obligations, available savings and general homebuying goals. Understanding where you're starting from makes the financing conversation far more useful — there's nothing to prepare or prove first.
Step 2
Explore Your Budget
Purchase price, down payment, interest rate, property taxes, insurance and other housing expenses all affect the monthly payment. Looking at those pieces together gives you a realistic picture of a scenario.
Try the affordability scenario belowStep 3
Learn About Financing Options
Different buyers may qualify for different mortgage programs. Rather than working through a long product list, the appropriate financing structure depends on your individual situation and goals.
Step 4
Explore Down Payment Options
A down payment does not necessarily have to come entirely from your own funds. Depending on the loan program and your circumstances, potential sources may include personal funds, eligible gifts and qualifying down payment assistance programs.
Read the down payment assistance guideStep 5
Begin the Pre-Approval Process
When you're ready, the process generally involves an application along with review of relevant financial information and documentation. Completing an application does not itself guarantee pre-approval.
Step 6
Shop for a Home
Once you understand the financing side and are appropriately prepared, you can work with your real estate professional to begin shopping based on your goals and situation.
Step 7
From Offer to Closing
After an accepted offer, the mortgage process continues through items such as documentation, property-related review, underwriting and final loan requirements before closing.
Have questions about where you are in the process?
Talk With JessicaWhat Might Fit Your Budget?
Use the affordability calculator to explore how income and monthly obligations can affect a homebuying scenario.
Home Affordability Scenario
Income before taxes and other deductions.
Include recurring obligations such as car loans, student loans, minimum credit-card payments and other debts that may appear on your credit report. Do not include normal household expenses such as groceries, utilities, cell-phone bills or subscriptions in this field.
Enter a payment that feels comfortable for your budget. This is only a starting point for the scenario.
A scenario input — not a quoted rate. Your actual rate depends on your loan program, credit, property and other factors.
Optional housing expenses
Illustrative Homebuying Scenario
Estimated Debt-to-Income Ratio
41.3%
Debt-to-income ratio compares certain monthly debt obligations with gross monthly income. Mortgage programs and lenders may calculate qualifying income, debts and housing expenses differently.
How this DTI was estimated
- Monthly debts
- $600
- Housing-payment scenario
- $2,500
- Total monthly obligations
- $3,100
- Gross monthly income
- $7,500
- Estimated DTI
- 41.3%
This scenario starts with the income, debts and housing payment you entered. It does not determine how much you qualify to borrow. Actual mortgage qualification depends on verified income, debts, credit, assets, loan program, property characteristics, lender guidelines and other factors.
The DTI shown is an estimate. Actual underwriting calculations may differ.
Want to look at your actual situation?
Jessica can review your real financing scenario — this calculator is a starting point, not a lending decision.
This calculator provides an educational estimate and is not a pre-approval, loan approval, commitment to lend, or guarantee of financing.
Understanding Down Payment Assistance
Down payment assistance can help some eligible homebuyers with down payment or closing-cost needs, but not all assistance programs work the same way. Before using a program, it is important to understand both the benefit and any requirements that may come with it.
What should I look at besides the assistance amount?
Before choosing a DPA program, questions worth understanding include:
- Is the assistance a grant or a loan?
- Is a second lien placed on the property?
- Are monthly payments required?
- When does repayment become due?
- Is any portion forgiven over time?
- Is there a minimum occupancy or ownership period?
- What happens if I sell?
- What happens if I refinance?
- Are there income, property or geographic restrictions?
- How does using the program affect my overall financing?
The largest assistance amount is not automatically the best option. Understanding the terms attached to the assistance is just as important as understanding how much assistance may be available.
Jessica can help you review your situation, discuss programs that may be worth exploring based on your purchase and location, and understand the terms and potential restrictions before deciding whether a particular program fits your goals.
Ask Jessica About Down Payment AssistanceDown payment assistance programs are subject to eligibility, availability and program requirements. Assistance may be structured as a grant, forgivable loan, deferred-payment loan, second mortgage or other form of financing. Repayment, occupancy, ownership, resale, refinancing and other restrictions may apply. Program terms and availability are subject to change.
Ready for the Next Step?
Start the Pre-Approval Process
If you're preparing to buy and ready for a more complete review, you can start by completing Jessica's mortgage application. Jessica can then review the information and documentation needed to determine the appropriate next steps for your financing situation.
Submitting an application does not guarantee pre-approval or loan approval. Additional information and documentation may be required.