Everything you need to go from “just looking” to “welcome home,” powered by American Mortgage Network and our family of brands.
Why This Guide Matters
Buying your first home is equal parts exciting and overwhelming. MortgageInsights.org created this roadmap to demystify the process, clarify costs, and help you make confident, financially sound decisions.
1. Set Your Budget
| Line Item | Typical Range | How to Estimate |
|---|---|---|
| Down Payment | 0 %–20 % of purchase price | Use VA, USDA, FHA (3.5 %) or conventional 3 % options to keep cash on hand |
| Closing Costs | 2 %–4 % | Includes appraisal, title, recording, taxes, homeowners insurance, and prepaid interest |
| Monthly Payment (PITI) | ≤ 28 % of gross monthly income | Combine Principal, Interest, Taxes, Insurance (and HOA, if any) |
| Emergency Fund | 3–6 months living expenses | Safeguards against unexpected repairs or income gaps |
Tools:
- Affordability Calculator – See your max price based on income and debts.
- Payment Calculator – Test scenarios: 30-yr vs. 15-yr, fixed vs. ARM.
2. Polish Your Credit
- Pull All Three Scores – Free annual reports; dispute errors early.
- Lower Utilization – Keep credit-card balances < 30 % of limits.
- Avoid New Debt – Delay auto loans, furniture financing, or extra credit cards until after closing.
- Track Progress – A 20-point boost can shave 0.25 % off your interest rate.
3. Understand Loan Options
| Program | Minimum Down | Credit Flexibility | Highlights |
|---|---|---|---|
| Conventional | 3 % (HomeReady / Home Possible) | 620+ | Cancel PMI at 80 % LTV |
| FHA | 3.5 % | 580+ (500 w/ 10 %) | Lenient DTI; assumable loan |
| VA | 0 % | No VA minimum* | No monthly MI; reusable entitlement |
| USDA | 0 % | 620+ | Rural areas; low annual fee |
*Most lenders require 580-620 FICO for VA.
Tip: American Mortgage Network will run a soft-pull pre-qualification that won’t ding your score.
4. Get Pre-Approved
- Upload Docs – Pay stubs, W-2s/1099s, bank statements, ID.
- Automated Underwriting – Receive a formal letter in 24 hours.
- Know Your Numbers – Max price, estimated payment, rate range.
- Negotiate Stronger Offers – Agents and sellers treat pre-approved buyers like cash.
5. Assemble Your Team
| Role | Value They Provide |
|---|---|
| Loan Officer (American Mortgage Network or affiliate) | Explains programs, locks rate, shepherds underwriting |
| Real-Estate Agent | Finds listings, writes offers, negotiates price & repairs |
| Home Inspector | Uncovers hidden defects—plumbing, roof, electrical |
| Title/Closing Attorney | Confirms clear ownership & handles funds transfer |
6. House-Hunting Tips
- Define Must-Haves – Bedrooms, commute, schools, HOA rules.
- Stay Within Budget – Don’t rely on future raises; buy for today.
- Compare Taxes & Insurance – County lines can swing PITI by hundreds.
- Check Resale Factors – Layout, neighborhood growth, nearby amenities.
7. Offer & Negotiation
- Market Analysis – Agent reviews recent sales for fair value.
- Earnest Money – 1 %–3 % deposit shows commitment (credited at closing).
- Contingencies – Inspection, financing, appraisal—protects your earnest money.
- Seller Credits – Up to 6 % of price can offset your closing costs on FHA/USDA; 4 % on VA; 3 % on low-down conventional.
8. From Contract to Closing
| Milestone | Typical Timeline | What Happens |
|---|---|---|
| Appraisal Ordered | Day 1–3 | Confirms value meets or exceeds loan amount |
| Home Inspection | Day 3–7 | Negotiate repairs or credits |
| Underwriting Review | Day 7–14 | Loan conditions issued (updated pay stub, LOE, etc.) |
| Final Approval | Day 15–20 | Clear-to-Close (CTC) received |
| Closing Disclosure | ≥ 3 days before signing | Review all costs & cash-to-close |
| Signing & Funding | Day 21–30 | Keys in hand—congrats, homeowner! |
9. After You Move In
- Set Up Escrow Reminders – Taxes & insurance often paid via mortgage servicer; confirm schedules.
- Create Maintenance Calendar – HVAC filters, gutter cleaning, lawn care.
- Build Equity Faster – Consider one extra principal payment per year or biweekly schedule.
- Monitor Rates – American Mortgage Network’s Rate-Watch emails alert you when a refinance could save money.
Frequently Asked Questions
How much should I save before buying?
Plan on 6 %–8 % of the home price to cover down payment plus closing costs (less with VA/USDA or negotiated seller credits).
Will student loans hurt my approval?
Possibly. Lenders calculate a payment even if you’re in deferment. Lower your DTI by consolidating or utilizing income-based repayment before applying.
What if my credit is thin?
Alternative data—rent, utilities, cell phone—can help. Our team can add “non-traditional credit” to your file.
Should I use a 15- or 30-year term?
A 15-year saves interest but raises payment ~40 %. Compare both in our calculator, balancing monthly comfort vs. long-term savings.
Ready to Begin?
Get your free pre-approval in minutes—no commitment, no hard credit pull:
[Start My First-Time Buyer Pre-Qual] → Apply Here
Prefer guidance first? Call (877)-354-1110 or Apply Now. Our licensed specialists are available 7 days a week.