First-Time Homebuyer Tips: What You Need to Know Before Applying for a Mortgage

Buying your first home is an exciting milestone, but it also comes with new challenges—especially when it comes to understanding the mortgage process. At Jaffe Home Loans, we believe first-time buyers should feel informed and confident every step of the way. Here’s what you need to know before applying for your first home loan.

What Makes First-Time Homebuying Unique?

Unlike repeat buyers, first-time homeowners are often learning the process from scratch. That means understanding loan programs, budgeting accurately, and preparing financially to qualify. Knowing what to expect can reduce stress and improve your chances of success.

Step 1: Check and Strengthen Your Credit

Your credit score is one of the most important factors in determining your loan eligibility and interest rate. Lenders look for scores of 620 or higher, and the best rates are generally reserved for those above 720. Order a free credit report, dispute errors, and work on paying down debt. Even improving your score by 20–30 points could save you thousands over the life of your loan.

Step 2: Understand Your Budget

It’s not just about how much the bank says you can borrow—it’s about how much you can comfortably afford. Consider your monthly mortgage payment plus property taxes, insurance, utilities, and maintenance. Many first-time buyers find success using the 28/36 rule: spend no more than 28% of your gross monthly income on housing and 36% on total debt payments.

Step 3: Save for a Down Payment and Closing Costs

While some loan programs require as little as 3% down, a larger down payment can reduce your monthly payment and help you avoid private mortgage insurance (PMI). Don’t forget about closing costs, which usually run 2–5% of the loan amount. Saving early and consistently makes a big difference.

Step 4: Get Pre-Approved

Pre-approval gives you a realistic price range and shows sellers you’re a serious buyer. During pre-approval, your lender will review your income, credit, and assets. Having that letter in hand can make your offer stand out in a competitive market.

Tips to Avoid Common Mistakes:

- Don’t open new credit accounts or make major purchases right before applying.

- Avoid changing jobs in the middle of the process.

- Keep financial documents organized so you can respond quickly to lender requests.

How Jaffe Home Loans Helps First-Time Buyers

We specialize in guiding first-time buyers through every step of the process. From reviewing credit reports to explaining down payment options, our team ensures you have the resources to move forward with confidence. We’ll break down the numbers, answer your questions, and help you make smart financial decisions as you take this exciting step.