1. Set a realistic budget
Start with a monthly payment you're comfortable with — including principal, interest, property taxes, homeowners insurance, mortgage insurance, and any HOA dues — not just the largest loan you could qualify for. Plan for closing costs and a cash cushion after you move in.
2. Check and strengthen your credit
Pull your credit reports, dispute errors, and pay down revolving balances. A higher score can lower your rate and open more assistance options.
3. Learn your loan options
| Loan | Down payment | Good fit for |
|---|---|---|
| FHA | Low down payment | Buyers with moderate credit |
| Conventional | Low down payment options for eligible first-time buyers | Buyers with stronger credit |
| VA | No down payment for eligible veterans and service members | Military borrowers |
| USDA | No down payment in eligible rural and suburban areas | Buyers within USDA income limits |
Eligibility and requirements vary by borrower and loan program.
4. Check down payment assistance
Most states — and many cities and counties — offer programs that reduce the cash you need. Find your state's programs and review how to qualify.
5. Get pre-approved
A pre-approval verifies your income, assets, and credit and tells you — and sellers — what you can afford. If you're using assistance, make sure your lender participates in the program.
6. Shop and make an offer
Work with a buyer's agent, compare homes against your budget, and write a strong offer. Ask about seller-paid closing costs, which can reduce your cash to close further.
7. Inspection, appraisal, and closing
Schedule an inspection, let the appraisal and underwriting finish, complete any required homebuyer education, review your Closing Disclosure, and sign. Then you get the keys.