1. Set a realistic purchase budget
Estimate a monthly payment that includes principal, interest, property taxes, homeowners insurance, mortgage insurance, and HOA dues if applicable. Keep cash available for closing costs, moving, repairs, and an emergency reserve.
2. Review credit, income, and savings
Check your credit reports for errors, list monthly debt obligations, gather income and asset records, and avoid opening unnecessary new credit accounts during the mortgage process. Lenders may request pay stubs, W-2s, tax returns, bank statements, and explanations of large deposits.
3. Compare loan programs and lenders
Compare conventional, FHA, VA, and USDA options only if you meet their criteria. Request written estimates from multiple lenders using the same purchase price, down payment, loan type, and rate-lock assumptions so the offers are easier to compare.
4. Get preapproved before making offers
A preapproval is based on a lender's review of your finances and is not a final loan commitment. Ask what conditions remain, how long the letter is valid, and whether the lender has verified income, assets, and debts.
5. Evaluate the property and contract
Review comparable sales, property condition, taxes, insurance availability, HOA documents, and any contingencies. A home inspection and lender appraisal serve different purposes: one helps assess condition, while the other supports the lender's collateral valuation.
6. Review disclosures and close
Compare the Closing Disclosure with the latest Loan Estimate, verify the cash-to-close amount and wire instructions using a trusted phone number, and ask questions before signing. After closing, keep copies of the note, deed or security instrument, disclosures, and insurance information.
Useful tools and related guides
Frequently asked questions
Do first-time buyers always get special grants?
No. Assistance programs differ by state, county, city, employer, and lender. Some are grants; others are loans with repayment or forgiveness conditions.
Does preapproval guarantee a mortgage?
No. Final approval depends on underwriting, updated financial information, the property, appraisal, title, and program requirements.
How many lenders should I compare?
The CFPB recommends comparing at least three loan offers when practical. Compare total costs and loan terms, not just the advertised interest rate.
Official resources
Use these primary sources to confirm current program rules and disclosures. Loan terms and eligibility can vary.
This page is general educational information, not a mortgage offer, legal advice, tax advice, or a commitment to lend. Program requirements, lender overlays, rates, fees, and local taxes can change. Confirm details with the relevant agency, local authority, and licensed mortgage professional.