Buying your first home is an exciting milestone, but it can also feel overwhelming if you’re unfamiliar with the process. Understanding each step can help you make confident and informed decisions. This guide covers the essential things every first-time homebuyer should know.

The first step is to evaluate your financial situation. Review your credit score, monthly income, and debt-to-income ratio to determine how much you can afford. Most lenders prefer a credit score of at least 620, though some programs allow lower scores for qualified buyers. Next, start saving for your down payment and closing costs. Down payments typically range from 3% to 20% of the home’s price, while closing costs can add another 2% to 5%. You may also qualify for first-time homebuyer assistance programs that offer grants or low-interest loans.

Once your finances are in order, get pre-approved for a mortgage. A pre-approval letter from a lender not only helps you understand your budget but also shows sellers that you’re a serious and qualified buyer. With your pre-approval in hand, you can start searching for your ideal home. Make a list of your must-haves, such as location, size, and amenities, and work with a trusted real estate agent to find properties that fit your needs and negotiate the best price.

When you find the right home, make an offer and schedule a home inspection to uncover any potential issues before closing. If everything checks out, you’ll move on to the closing process, where you’ll finalize your mortgage, sign documents, and pay closing costs.

Finally, once the paperwork is complete, you’ll receive the keys to your new home. Becoming a homeowner is a significant achievement—one that offers stability, freedom, and a valuable investment in your future.