First-time buyers
Your First Note: The First-Time Homebuyer's Guide.
No one starts with a masterpiece. Here's the homebuying process, one note at a time.
01Am I ready to buy?
Readiness is less about a single number and more about stable income, manageable debts, savings for upfront costs, and a timeline that fits your life.
Common misconception
“You need perfect credit and 20% down.” — not necessarily.
What to prepare
A rough monthly budget and a list of your debts.
Ask Lucas
“What would make me more prepared in six months?”
02Renting vs. buying
Owning builds equity over time but carries maintenance, taxes and insurance. Renting offers flexibility. The right answer depends on how long you plan to stay.
Common misconception
“Renting is always throwing money away.” — not necessarily.
What to prepare
Your current rent and how long you expect to stay in the area.
Ask Lucas
“How do ownership costs compare with my rent?”
03Credit scores and history
Lenders review your credit history to understand how you manage debt. Payment history and how much of your available credit you use both matter.
Common misconception
“Checking your own credit hurts your score.” — not necessarily.
What to prepare
Free credit reports from annualcreditreport.com.
Ask Lucas
“Which items on my report matter most?”
04Income and existing debts
Your debt-to-income ratio compares monthly debt payments to gross income and helps determine a comfortable payment.
Common misconception
“Only your income matters.” — not necessarily.
What to prepare
Recent pay stubs, W-2s and a list of monthly obligations.
Ask Lucas
“How is my income type evaluated?”
05Prequalification vs. preapproval
Prequalification is an informal estimate. A preapproval involves a lender's review of documentation and credit and is stronger when making an offer.
Common misconception
“They're the same thing.” — not necessarily.
What to prepare
Income, asset and identity documents.
Ask Lucas
“What documents do you need for a preapproval review?”
06Down payment basics & assistance
Many loan types allow less than 20% down. Down payment assistance programs may exist depending on location and eligibility.
Common misconception
“You must put 20% down.” — not necessarily.
What to prepare
Savings statements and your target price range.
Ask Lucas
“What assistance options might be worth exploring where I'm buying?”
07Closing costs & mortgage insurance
Closing costs cover lender, title and third-party fees. Mortgage insurance may apply with smaller down payments.
Common misconception
“Closing costs are included in the down payment.” — not necessarily.
What to prepare
A savings cushion beyond your down payment.
Ask Lucas
“Can you walk me through a sample Loan Estimate?”
08Fixed vs. adjustable; common loan types
Fixed rates stay the same; adjustable rates can change after an initial period. Common options include conventional, FHA, VA and USDA loans, each with its own guidelines.
Common misconception
“An ARM is always risky.” — not necessarily.
What to prepare
How long you plan to stay in the home.
Ask Lucas
“Which loan types might fit my situation?”
09Offer, earnest money, appraisal & inspection
Once your offer is accepted, earnest money shows commitment. Inspections reveal property condition; appraisals confirm value for the lender.
Common misconception
“The inspection and appraisal are the same.” — not necessarily.
What to prepare
Funds for earnest money and inspection fees.
Ask Lucas
“What happens if the appraisal comes in low?”
10Underwriting, Closing Disclosure & closing day
Underwriting verifies your file. You'll receive a Closing Disclosure at least three business days before closing to review final terms.
Common misconception
“Once preapproved, nothing can change.” — not necessarily.
What to prepare
Keep your finances steady — no new debt or large unexplained deposits.
Ask Lucas
“What should I avoid doing before closing?”
11After you get the keys
Set up your servicer account, understand escrow, plan for maintenance and keep your documents organized.
Common misconception
“The mortgage relationship ends at closing.” — not necessarily.
What to prepare
A home maintenance reserve.
Ask Lucas
“When should we review my mortgage again?”
Educational information only. Program availability and eligibility vary and are subject to lender review.
Finale
Build My Homeownership Plan
Share where you are and Lucas will help map the next few notes.