The Step-by-Step Guide to Buying Your First Home
Buying your first home is one of the most exciting milestones in life, but it can also feel confusing if you’re not sure where to start. That’s where having the right mortgage guide (hi 👋) can make the whole process way easier.
Let’s break down the homebuying journey from a mortgage broker’s point of view, so you know exactly what to expect and how to get prepared.
Step 1: Check Your Financial Readiness
Before you dive into listings or open houses, take a quick look at your financial foundation.
Ask yourself:
What’s my monthly income and spending look like?
Do I have money saved for a down payment and closing costs?
What’s my credit score right now?
Your mortgage broker can help you review your credit report, figure out what loan programs you might qualify for, and even give tips to boost your score if needed. I have helpful tool you can check out to get you started.
Step 2: Get Pre-Approved for a Mortgage
This is the most important first move for first-time buyers.
A mortgage pre-approval shows exactly how much you can afford and proves to sellers that you’re serious.
During pre-approval, your broker will:
Review your income, credit, and debt
Recommend the best loan options for your goals (like FHA, Conventional, or VA)
Estimate your interest rate and monthly payment
Once you have that pre-approval letter in hand, you’ll know your price range and can start shopping confidently.
Step 3: Explore Loan Options
Every buyer’s situation is different, and that’s where working with a mortgage broker really pays off. A broker has access to multiple lenders, not just one, so they can shop around and find the best rates and programs for you.
Common loan types include:
Conventional loans (great if you have strong credit and a solid down payment)
FHA loans (ideal for lower credit scores or smaller down payments)
VA loans (for eligible veterans or active military)
USDA loans (for qualifying rural properties)
Your broker will walk you through which one fits your financial situation and long-term plans.
Step 4: Find Your Home and Make an Offer
Now you get to have some fun. Partner with a great real estate agent who understands your budget and area. When you find “the one,” your broker can quickly update your pre-approval and provide an updated loan estimate for your offer.
Having a broker who responds fast can make all the difference in a competitive market.
Step 5: Lock in Your Interest Rate
Once your offer is accepted — congrats! 🎉 — it’s time to lock in your rate.
Your mortgage broker will watch rate trends and help you decide the best moment to lock (since rates can change daily).
They’ll also help you decide between a fixed-rate or adjustable-rate mortgage based on your goals.
Step 6: The Loan Processing + Underwriting Stage
Here’s where things get real.
After you’re under contract, your broker will collect documents like pay stubs, tax returns, and bank statements to submit your loan for underwriting.
The lender will review everything to make sure you qualify. Your broker acts as your advocate during this stage, making sure communication stays smooth and any issues get handled quickly.
Step 7: The Appraisal and Home Inspection
Your lender will order an appraisal to make sure the home’s value supports the loan amount.
Meanwhile, you’ll schedule a home inspection to check for any needed repairs.
If anything comes up, your broker and agent can help you navigate renegotiations or closing adjustments.
Step 8: Clear to Close
Once underwriting signs off on everything, you’ll hear the magic words: “Clear to Close.”
Your broker will review your final loan documents, confirm your closing costs, and schedule the big day.
You’ll sign a stack of papers, get your keys, and just like that — you’re a homeowner. 🏡
