Buying your first home? It’s an exciting milestone, but it can also feel overwhelming. Don’t worry—we’re here to break it down into simple steps so you can navigate the process with confidence. From understanding credit scores to securing a mortgage, this guide will help you take the first step toward homeownership.
What Do You Need to Buy a House?
Preparation is key to making your homebuying journey as smooth as possible. Knowing your budget and what lenders look for can save you time and set you up for success.
Check Your Credit Score
Your credit score plays a major role in mortgage approval and interest rates. While you don’t need perfect credit, improving your score before applying can lead to better loan terms.
Show Proof of Income
Lenders will review your employment history, financial records, and existing debts to determine how much you qualify for. Income sources may include your salary, bonuses, child support, or Social Security benefits.
Get Approved1 for a Mortgage
A mortgage approval helps you shop smarter by knowing exactly what you can afford. It also shows sellers you’re a serious buyer, giving you an edge in competitive markets.
Plan for Down Payment and Closing Costs
While some loans offer low or no down payment options, you’ll still need to budget for closing costs (typically 2–6% of the home’s price). Down payment assistance programs2 may be available to help with upfront costs.
How to Get a Home Loan in 4 Simple Steps
- Apply for a mortgage: Submit your application, connect financial accounts, and provide required documents for review.
- Property appraisal and inspection: The home must be professionally appraised, inspected, and cleared for any title issues.
- Loan processing and underwriting: Your lender will finalize the details, lock in your rate, and schedule closing.
- Close on your home: Review your loan documents, finalize payments, and get the keys to your new home!
PrimeLending makes this process easy with our digital application, allowing you to apply from anywhere. Track your loan’s progress with our Home Loan Tracker and stay informed every step of the way.
What Credit Score Do You Need to Buy a Home?
Your FICO® Score ranges from 300–850, and higher scores generally mean better mortgage rates. That said, PrimeLending offers hundreds of home loan programs to help customers across a wider range of credit scores finance their home purchase. Your credit score is based on payment history, debt owed, length of credit history, new inquiries, and types of credit.
Want to boost your score? Pay bills on time, reduce debt, and avoid opening new credit accounts right before applying for a loan.
First-Time Homebuyer Programs
There are several loan options designed to help first-time buyers:
- FHA Loan: Low down payments (as low as 3.5%) and flexible credit requirements.
- USDA Loan: No down payment required for eligible homes in rural or suburban areas.
- VA Loan: Exclusive to Veterans, active-duty military, and eligible spouses with zero down payment3 and reduced closing costs.
Down Payment Assistance
Saving for a down payment can be tough, but assistance programs can help by covering up to 5% of the loan amount for eligible buyers. These programs can also assist with closing costs, reducing upfront expenses.
Get Started Today
Buying your first home is an exciting journey, and having the right lender can make all the difference. PrimeLending is here to simplify the process and support you every step of the way.
Ready to take the next step? Contact a PrimeLending loan expert today!
1Approval means an Underwriter has reviewed your application and has verified all necessary forms of income, assets, and credit. All loans subject to final credit approval and acceptable property. Conditions and restrictions may apply.
2Certain restrictions apply, subject to down payment assistance program guidelines. Not available in all areas. Please contact your PrimeLending loan officer for more details.
3Down payment waiver is based on VA eligibility.
