Guide To Buying Your First House May 2026

For active-duty military, veterans, and surviving spouses, offering zero down payment options.

Be honest about what you can afford. Lenders use the "debt-to-income" (DTI) ratio to qualify you for a loan, usually looking for a DTI of 43% or less. However, just because a bank says you can borrow a certain amount doesn’t mean you should. Calculate your monthly housing costs, including: Principal and interest Property taxes Homeowners insurance Homeowners Association (HOA) fees (if applicable) Utilities and maintenance costs Phase 2: Getting Mortgage Pre-Approval guide to buying your first house

Many first-time buyers believe they need a 20% down payment. While 20% is ideal because it eliminates the need for Private Mortgage Insurance (PMI), many loan programs allow as little as 3% to 5% down. However, just because a bank says you can

Don't just go with your primary bank. Get quotes from multiple sources, including local banks, credit unions, and online brokers. Compare their loan estimates, looking closely at both the interest rates and the loan origination fees. 3. Understand Your Loan Options Don't just go with your primary bank

Your credit score is the single most important factor in determining your mortgage interest rate.

Long before you start browsing real estate websites, you need to get your financial house in order. This phase determines how much you can afford and what kind of loan terms you will receive. 1. Assess Your Credit Score