First Time Home Buyer 101

Buying your first home is exciting—but it can also feel overwhelming. This guide breaks the process down step by step, from budgeting and financing to house hunting and closing the deal. Whether you're just starting to explore or ready to make an offer, this checklist will help you feel informed, confident, and prepared every step of the way.

1. Understand What You Can Afford

  • Use the 28/36 rule: No more than 28% of your income on housing, 36% on total debt.

  • Include mortgage, taxes, insurance, HOA, and maintenance.

  • Get pre-approved to know your actual price range.

2. Know Your Loan Options

  • Conventional Loan – 3–20% down

  • FHA Loan – as low as 3.5% down

  • VA Loan – 0% down (for veterans)

  • CalHFA & Down Payment Assistance – local support for first-time buyers

3. Start Saving Early

  • Down payment + closing costs (~2–5% of purchase price)

  • Budget extra for moving and emergencies

4. Build Your Team

  • Real Estate Agent – guides your search and offer

  • Lender – secures financing

  • Inspector & Appraiser – confirm home safety and value

5. House Hunt Smart

  • Define must-haves vs. nice-to-haves

  • Explore neighborhoods, schools, commute

  • Visit open houses or schedule tours

6. Make an Offer

  • Agent helps craft a competitive offer

  • Include contingencies (loan, appraisal, inspection)

  • Negotiate as needed

7. Go Through Escrow

  • Finalize your loan approval

  • Home inspection and appraisal

  • Sign documents and prepare to close

8. Close and Move In!

  • Do a final walkthrough

  • Get your keys and move in 🥳

💡 Bonus Tips

  • Do NOT make large purchases during the loan process

  • Stay in touch with your agent and lender

  • Always ask questions whether it is market trends, insights or lending options!