First-time homebuyer guide
Your first home, demystified.
Seven of our last thirty Google reviews are from first-time buyers. This is the guide we wish every one of them had found before their first open house, the real numbers, the real order of operations, zero jargon.
Start here
The three numbers that decide everything
Before Zillow, before open houses, before the Pinterest board, three numbers determine what you can buy:
- Your credit score. 620+ opens conventional loans; FHA considers scores from 550. At 740+ you get the best rates. Check your score free through your bank or card issuer, and if it's borderline, six months of on-time payments and lowered card balances can move it meaningfully.
- Your debt-to-income ratio (DTI). Add your monthly debt payments (cards, cars, student loans) plus the future mortgage; lenders generally want that total under about 36–45% of gross monthly income. This, not the sticker price, is usually what caps your budget.
- Your down payment + closing costs. The 20% rule is a myth: conventional starts at 3% down, FHA at 3.5%, and VA/USDA at 0% for eligible buyers. Budget another 2–3% of the price for closing costs, some of which sellers can cover.
The order of operations (don't skip step one)
1. Get pre-approved before you shop. Not pre-qualified, pre-approved, meaning your income, assets, and credit are verified. It costs nothing, takes minutes to start, and transforms you from a browser into a buyer sellers take seriously. It also surfaces any credit surprises while there's still time to fix them.
2. Set your real budget below your max. The bank's ceiling is not your comfort zone. We'll show you the monthly payment at several price points, pick the one that leaves room for living.
3. Shop with your agent, offer with confidence. When you find the one, your offer arrives with an underwritten pre-approval from a lender listing agents recognize. In multiple-offer situations, that reputation is your edge.
4. Escrow: inspect, appraise, close. Once your offer is accepted, we order the appraisal, you complete inspections, and our processing team drives your file daily. Typical timeline with us: about 3–4 weeks, our clients regularly close early.
Mistakes we see every month (all avoidable)
- Financing furniture before closing. New debt changes your DTI and can sink an approved loan. Buy the couch after you have keys.
- Changing jobs mid-escrow. Lenders verify employment right before closing. If a move is coming, tell us first, timing matters.
- Undocumented cash. Large mystery deposits can't count toward your down payment. Gift from family? Great, we'll document it properly with a simple letter.
- Waiting for the "perfect" rate. You can refinance a rate later. You can't rewind a year of SoCal price appreciation.
First-timer FAQs
The questions everyone's afraid to ask
How much income do I need to buy a $700,000 home?
Rough math at current rates with 10% down: expect a total monthly payment around $4,800–$5,300 including taxes and insurance, which typically wants a household income around $150,000–$190,000 depending on your other debts. Your exact number depends on rate, program, and down payment, run it in our affordability calculator, then let us price it for real.
Can my parents help with the down payment?
Yes, documented gift funds from family are allowed on conventional and FHA loans, and they can cover the entire down payment in many cases. It takes a simple gift letter and a paper trail; we handle the documentation constantly.
What credit score do I need for my first home?
Conventional wants 620+; FHA considers scores from 550. More important: don't guess. A five-minute review of your actual report tells us your options today and the fastest path to better pricing, sometimes one paid-down card moves you a whole pricing tier.
Are there first-time buyer assistance programs in California?
Yes, CalHFA and various county programs offer down-payment assistance and favorable terms for eligible buyers, and they can stack with FHA or conventional loans. Eligibility depends on income, location, and price. Ask us what's currently funded, programs open and close throughout the year.
How long does buying a house actually take?
Pre-approval: a day or two. House hunting: entirely up to you and the market. Escrow (offer accepted to keys): about 3–4 weeks with us. Total for a typical first-time buyer: a few months, most of it the fun part, the loan is the fast part when your file's built right from day one.
Every homeowner was
a first-timer once.
"Surprisingly stress free and easy.", an actual first-time buyer, last year. Let's make that your review.
Let's talk it through
Want to go over these numbers?
Call us, or send your info and we'll walk through them with you. A real conversation about your situation, no pressure and no obligation.
Mon to Fri, 8:30am to 7:30pm PST