The First-Time Buyer's Playbook

Five steps to take before you tour a single home, plus the loan types and costs to plan for.

When first-time buyers come to me, they're usually excited and a little weighed down at the same time. There's so much advice out there that it's hard to know what comes first. This playbook puts it in order: five steps I walk my first-time buyers through, plus a quick look at loan types and the costs to plan for.

Most of it happens before you ever set foot in a house, and that's on purpose.

Start with an agent and a plan

The first step is a conversation, not a showing. Sit down with an agent and map out your budget, your goals and your timeline. That keeps your search focused on homes that fit your life and your monthly comfort zone, saves you from spending weekends touring houses that were never right and gives you a strategy so you can move fast when the right one comes along.

Practice the payment before you have it

This step does two jobs at once. Pick your target monthly payment, including taxes, insurance, homeowners association dues and mortgage insurance if they apply, and set that amount aside every month in a separate savings account. If you're renting now, save the difference between your rent and the projected payment. You'll find out whether that payment really feels comfortable, and you'll build a cushion for closing costs, moving and the surprises that come with a first year of owning.

A credit tune-up can help too. Asking for a higher limit on a card can lower your credit utilization, which is how much of your available credit you're using, and that often helps your score as long as your spending stays the same. If you're within a few months of buying, run it by your lender first so the timing doesn't cause a problem.

Get pre-approved, then name your non-negotiables

A pre-approval means a lender has reviewed your documents and verified the key details. That helps you avoid underwriting surprises that could delay closing or change your loan terms, and it lets you shop with confidence and negotiate from a position of strength.

Then list three to five must-haves, like location, number of bedrooms, commute or a yard, along with your deal-breakers, like a busy road or a layout you know won't work. Add a few nice-to-haves so you can stay flexible without losing sight of what matters most.

Common questions about down payments and costs

How much do I need for a down payment?

It depends on the loan. VA loans for eligible veterans and USDA loans in eligible rural areas can require nothing down, FHA loans start at 3.5% and some conventional loans allow 3% for first-time buyers. Your lender will confirm what you qualify for.

What costs should I plan for besides the down payment?

Plan for a home inspection, an appraisal, earnest money and closing costs, which cover things like taxes, attorney fees and loan origination. Closing costs can sometimes be rolled into the loan or paid by the seller, and your buyer's agent's compensation is negotiable, so ask about it early.