The Mollerus Collection · Coldwell Banker Realty Gundaker
Everything you need to know before buying your first home — written in plain English by agents who've seen it all.
Part 01
Before you fall in love with a house, make sure these five things are in order. This step saves most buyers months of wasted time.
Lenders want to see 2 years of consistent employment history. Gaps or recent job changes don't automatically disqualify you — but you'll need to explain them clearly.
Most conventional loans require 620+. FHA loans can go as low as 580 with 3.5% down. The higher your score, the better your interest rate — and the difference adds up over 30 years.
Check your score free at AnnualCreditReport.com — the only truly free, no-gimmick source. Look for errors and dispute anything wrong before a lender pulls your credit.
Lenders look at your debt-to-income ratio (DTI) — your total monthly debt payments divided by your gross monthly income. Most want this under 43%. If you make $5,000/month and pay $500 in loans and car payment, you have roughly $2,150/month available for a mortgage (at 43% DTI).
The down payment is just the beginning. See Part 3 for the full cost picture — most first-time buyers are surprised by how much cash they actually need at closing.
If there's a real chance you'll move for work or a major life change within the next 2–3 years, buying may not make sense right now. Real estate transactions have costs on both ends.
Part 02
A pre-approval is not the same as pre-qualification. Pre-qualification is a quick estimate. Pre-approval means the lender has reviewed your actual documents — income, tax returns, bank statements, credit — and given you a conditional commitment.
In competitive price ranges, sellers expect a pre-approval letter with every offer. Without one, you can't move fast enough to win.
Before touring homes, separate your non-negotiables from your nice-to-haves. Non-negotiables are things you absolutely can't compromise on. Nice-to-haves are things you'd love but could live without. Being clear on this prevents you from talking yourself into the wrong house.
Use the Open House Checklist in Part 6. The key is what you look at, not just what you feel. Great curb appeal can mask expensive problems. See the checklist for what to inspect in every room.
When you find the right home, we move fast. Your offer includes the purchase price, earnest money (typically 1–2% of the purchase price), contingencies (inspection, financing, appraisal), the proposed closing date, and any items you want included.
Earnest money is a good-faith deposit held in escrow. It applies to your down payment or closing costs at the end. You get it back if the deal falls through due to a valid contingency. You could lose it if you back out without cause — which is why contingencies matter.
You hire an inspector ($300–500). They spend 2–4 hours checking everything. Safety issues and major systems are worth negotiating. Cosmetic items generally aren't.
Your lender orders an appraisal to confirm the home is worth what you're paying. If it comes in low, you can renegotiate, make up the difference in cash, or walk away.
Done the day before or day of closing. You verify the home is in the same condition, all agreed repairs were made, and nothing was removed that should have stayed.
You sign a lot of paperwork. Bring a photo ID and certified or cashier's check (or wire transfer) for your closing funds. At the end — you get the keys.
Part 03
Most first-time buyers budget for the down payment and are surprised by everything else. Here's the full picture.
| Loan Type | Min. Down Payment |
|---|---|
| Conventional (first-time buyer programs) | 3% |
| FHA Loan | 3.5% (580+ score) |
| VA Loan (veterans) | 0% |
| USDA (rural areas) | 0% |
| Conventional (avoid PMI) | 20% |
PMI (Private Mortgage Insurance) — if you put less than 20% down on a conventional loan, you'll pay PMI added to your monthly payment. On a $300K loan that's typically $125–375/month. It cancels automatically when you reach 20% equity.
On a $300K home, budget $6,000–12,000 at closing — in addition to your down payment.
| Item | Typical Amount |
|---|---|
| Loan origination fee | 0.5–1% of loan |
| Appraisal | $500–700 |
| Home inspection | $300–500 |
| Title insurance & title search | $800–1,500 |
| Prepaid homeowner's insurance (1 year) | $1,000–2,000 |
| Prepaid property taxes (2–6 months) | Varies by area |
| Prepaid interest (to end of month) | A few hundred |
Ask your lender specifically about state and local down payment assistance programs — many offer below-market mortgage rates and grants for income-qualified buyers. Many people who think they don't qualify actually do. Your lender will know what's available in your area.
Part 04
Part 05
Screenshot this or print it. Use it at every home you tour — you'll start to spot patterns fast.
We'll run the numbers, show you what's actually available in your range, and connect you with a great local lender — all at no cost to you as a buyer.