First-Time Homebuyer Guide

Am I Ready to Buy?

Buying your first home is one of the biggest financial decisions you'll make. Here's a quick readiness checklist:

• Stable income and employment (ideally 2+ years)
• Emergency fund with 3–6 months of expenses (separate from your down payment)
• Credit score of 580+ (620+ recommended for conventional)
• Monthly debts under 43% of gross income
• Down payment saved (or eligibility for a low/no-down program)

Best Loan Programs for First-Time Buyers

• Conventional 97: Only 3% down for first-time buyers with 620+ credit. PMI required until 20% equity.
• FHA Loans: 3.5% down with 580+ credit. More flexible qualifying — great for lower credit scores.
• VA Loans: $0 down, no PMI for eligible veterans and service members. One of the most powerful mortgage benefits available.
• USDA Loans: $0 down for homes in eligible rural areas with income limits.
• State DPA Programs: Many states offer down payment assistance grants or second mortgages for first-time buyers.

Down Payment Assistance (DPA)

Down payment assistance programs can cover some or all of your down payment and closing costs. Types include:

• Grants: Free money that doesn't need to be repaid
• Forgivable loans: Second mortgages that are forgiven after 5–10 years of occupancy
• Deferred payment loans: Second mortgages with no monthly payment — due when you sell or refinance
• Matched savings programs: Government matches your savings for your down payment

Airus Lending works with DPA programs across multiple states. Ask your advisor about programs available in your area.

The Homebuying Process: Step by Step

1. Get pre-approved — Know your budget and show sellers you're serious
2. Find a real estate agent — Work with a buyer's agent who knows your market
3. House hunt — Tour homes within your pre-approved range
4. Make an offer — Submit a written offer with your pre-approval letter
5. Home inspection — Hire an inspector to evaluate the property condition
6. Appraisal — The lender orders an appraisal to verify the home's value
7. Underwriting — The lender reviews your complete file for final approval
8. Clear to close — All conditions met — you're approved!
9. Closing day — Sign documents, receive keys, you're a homeowner!

5 Common Mistakes to Avoid

1. Buying at the top of your budget — Leave room for maintenance, property taxes, and life surprises
2. Skipping pre-approval — You risk falling in love with a home you can't afford
3. Not comparing lenders — A broker like Airus Lending does this for you across multiple lenders
4. Making large purchases during the process — New car, furniture, or credit cards can tank your approval
5. Waiving the home inspection — This can cost tens of thousands in unexpected repairs