The Home Buying Timeline
Most home purchases take 3-6 months from start to close. Here's the roadmap:
Months 1-2: Preparation
- Check your credit score (aim for 680+, ideally 740+)
- Save for down payment and closing costs
- Get pre-approved for a mortgage
- Determine your budget
Months 2-4: Shopping
- Hire a real estate agent
- Start viewing homes
- Make an offer (may take multiple attempts)
- Get offer accepted
Months 4-6: Closing
- Home inspection
- Appraisal
- Final mortgage approval
- Closing day — get the keys!
How Much Do You Need Saved?
For a $300,000 home:
| Expense | Amount |
|---|---|
| Down payment (3.5% FHA) | $10,500 |
| Down payment (5% conventional) | $15,000 |
| Down payment (20% no PMI) | $60,000 |
| Closing costs (3%) | $9,000 |
| Moving expenses | $2,000-5,000 |
| Emergency repairs | $3,000-5,000 |
| Total (minimum) | $25,000-80,000 |
Loan Types for First-Time Buyers
FHA Loan
- Down payment: 3.5%
- Credit score: 580+ (3.5% down), 500+ (10% down)
- Best for: Lower credit scores, smaller down payments
- Downside: Mortgage insurance for life of loan
Conventional Loan
- Down payment: 3-20%
- Credit score: 620+ (680+ for best rates)
- Best for: Good credit, will reach 20% equity relatively quickly
- Downside: PMI until 20% equity
VA Loan (Veterans)
- Down payment: 0%
- Credit score: No VA minimum (lenders typically want 620+)
- Best for: Veterans and active military
- Downside: Funding fee (can be rolled into loan)
USDA Loan (Rural)
- Down payment: 0%
- Credit score: 640+
- Best for: Buying in eligible rural/suburban areas
- Downside: Geographic and income restrictions
Hidden Costs Nobody Tells You About
One-Time Costs
- Home inspection: $300-500
- Appraisal: $400-600
- Title insurance: $500-2,000
- Moving costs: $2,000-5,000
Ongoing Costs
- Property taxes: 0.5-2.5% of home value/year
- Homeowners insurance: $1,000-3,000/year
- Maintenance: 1-2% of home value/year
- PMI (if applicable): $100-300/month
- HOA (if applicable): $200-500/month
5 Biggest First-Time Buyer Mistakes
- Not getting pre-approved first — You need to know your budget before shopping
- Skipping the home inspection — Never waive the inspection. $400 can save you $40,000
- Buying at the top of your budget — Leave room for repairs, maintenance, and life
- Ignoring the neighborhood — You can change the house, not the location
- Making big purchases before closing — Don't buy a car or open new credit cards during the mortgage process
First-Time Buyer Programs
Many states and cities offer:
- Down payment assistance grants
- Below-market interest rates
- Tax credits
- Closing cost assistance
Search "[your state] first-time home buyer programs" for local options.
Calculate Your Monthly Payment
Use our [mortgage calculator](/mortgage-calculator) to see what your monthly payment will be based on different home prices, down payments, and interest rates.