First-Time Homebuyer Guide

 

Buying your first home is one of the biggest financial and emotional decisions you’ll ever make. This step-by-step guide walks you through the entire process.

 

1. Prepare Financially (3–12 months before you start looking)

       

Check Your Credit

• Pull your free credit reports from AnnualCreditReport.com (all three bureaus).

• Aim for a credit score of at least 620 (conventional loan) or 580 (FHA). 740+ gets you the best rates.

• Pay down debt, don’t open new accounts, and fix any errors.

 

Calculate How Much House You Can Afford

• General rule: Housing costs (mortgage + taxes + insurance + HOA) ≤ 28–33% of gross monthly income.

• Use online calculators (Zillow, NerdWallet, Bankrate) or the 28/36 rule.

• Factor in closing costs (2–5% of purchase price), moving, and immediate repairs.

 

Save for Down Payment & Closing Costs

• Conventional loan: 3–20% down (3–5% common with PMI)

• FHA loan: 3.5% down (580+ credit)

• VA loan: 0% down (veterans & eligible military)

• USDA loan: 0% down (rural areas, income limits)

• Use a first-time buyer down-payment assistance programs (DPA) — Click Here for More Info on First-time Buyer Programs in Hillsborough County, FL
   

Get Pre-Approved (Not Just Pre-Qualified)

• Shop at least 3 lenders (banks, credit unions, online lenders, mortgage brokers).

• Check current average 30-year fixed rates daily.

• A pre-approval letter shows sellers you’re serious and tells you your exact budget.
   

2. Assemble Your Team

• Real estate agent (buyer’s agent): BetterNest Buyer Services

• Mortgage lender/broker 

• Real estate attorney (recommended)

• Home inspector (never skip)

• Insurance agent
   

3. Start House Hunting
Define Your Needs vs. Wants

• Must-haves: bedrooms, commute time, school district

• Nice-to-haves: granite counters, open floor plan, etc.

Understand the Current Market

• Market Consultation is included with our BetterNest Buyer Services 

4. Get the Home Under Contract
Typical timeline after accepted offer: 30–45 days to close.
Major Steps & Contingencies

1. Earnest money deposit (usually 1–3%)

2. Home inspection (10–14 days) — $400–800

3. Appraisal (lender orders) — $500–800

4. Final loan approval (underwriting)

5. Homeowners insurance quote & binding

6. Final walkthrough (day before or morning of closing)

7. Closing/settlement
    

Common Contingencies

• Financing contingency

• Appraisal contingency (protects you if house appraises low)

• Inspection contingency (negotiate repairs or credits)
   

5. Closing Day

What to bring:

• Government ID

• Cashier’s check or wire for closing costs/down payment
   

You’ll sign ~100–200 pages. You get keys usually same day or next day.
First-Time Buyer Programs

• FHA 203(k): Buy + renovate with one loan

• Fannie Mae HomeReady / Freddie Mac Home Possible: 3% down, reduced PMI, flexible income sources

• For Hillsborough County Specific Programs Click Here

 

Timeline Checklist (Typical 4–6 Months)

• 6–12 months out: Improve credit, save money

• 3–6 months out: Get pre-approved, research neighborhoods

• 1–3 months out: Hire agent, start touring homes

• Offer accepted → 30–45 days to closing

• Move in!

 

Feel free to reach out with any questions 813-519-9437 or contact us