1. Steps to buying your first home

   • Assess your finances (budget, credit score, debt-to-income ratio)
   • Get pre-approved for a mortgage
   • Find a real estate agent
   • Search for homes
   • Make an offer
   • Home inspection and appraisal
   • Close and move in

2. How much do I need for a down payment?

   Typically 3% to 20% of the home price. FHA or VA loans may require less.

3. What is mortgage pre-approval?

   A letter from a lender confirming how much you can borrow based on your financial info.

4. Improving your credit score

   Pay debts, avoid new credit, and pay bills on time. Aim for 620+ for conventional loans.

5. Fixed-rate vs. ARM

   Fixed-rate stays constant. ARM can change after an initial fixed period.

6. What are closing costs?

   2% of the home price covering fees like title, inspection, and origination.

7. What is escrow?

   A holding account for funds during sale; also pays taxes/insurance monthly.

8. Do I need a home inspection?

   Yes. It checks the home for hidden problems before purchase.

9. Is homeowners insurance required?

   Yes. It protects your home and is required by lenders.

10. What is a closing disclosure?

    Final statement of mortgage terms and closing costs. Review carefully.

11. Loan options for first-time buyers

    • FHA Loans
    • VA Loans
    • Conventional Loans
    • USDA Loans

12. How long does closing take?

    Usually 30 5 days after offer acceptance.

13. What is earnest money?

    A 1% deposit showing commitment, applied to down payment or closing costs.

14. Buying with student loan debt

    Yes. Keep your debt-to-income ratio below 43% to qualify.

15. Choosing a neighborhood

    • Proximity to work/schools
    • Safety and amenities
    • Public transport and property value trends

• Amortization: Repaying a loan with regular payments
• APR: Total yearly cost including fees
• Appraisal: Professional home valuation
• Closing Disclosure: Final mortgage terms and fees
• Conventional Loan: Not government-backed
• DTI Ratio: Debts divided by income
• Escrow: Holding account for funds or monthly payments
• FHA Loan: Government-backed with low down payment
• Fixed-Rate Mortgage: Rate doesn't change
• Mortgage Insurance: Required if down payment < 20%
• Principal: The borrowed amount
• Refinancing: Replacing your current mortgage
• Underwriting: Risk evaluation by the lender

• Know your true budget
• Make a stronger offer
• Close faster
• Fix financial issues early
• Set realistic expectations
• Get better rates and terms
• Feel confident shopping
• Prepare for full ownership costs

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