Common Questions for
First-Time Homebuyers

Usually, it starts with a mortgage consultation. During this, you’ll provide your financial details, and your lender will assess your creditworthiness to estimate how much you can borrow.

This step sets you on the path to homeownership and often results in a loan pre-approval.

The down payment amount can vary, but typically, it’s around 3% or more of the home’s purchase price.

Some lending programs, especially those for first-time buyers or veterans, might even let you skip the down payment. The idea that you need 20% is a remnant from boomer days. In reality, most first-time buyers put down just 6%.

A fixed-rate mortgage keeps the interest rate steady throughout the loan, meaning your monthly payments stay the same.

But with an adjustable-rate mortgage (ARM), the rate stays put for a set length of time, then the rate changes.

You’ve got the down payment covered, but don’t forget about closing costs (fees linked with the sale).

These include things like property taxes, homeowners insurance, and fees for an attorney and title insurance, in addition to the down payment.

Your credit score plays a big role in whether you can snag a mortgage and what it’ll cost you.

A higher score makes lenders more confident you’ll pay on time, and may help you qualify for reduced mortgage interest rates and costs.

There are many programs at the federal, state, and municipal levels that offer down payment assistance, grants, or favorable loan terms to first-time homebuyers.

You can start by researching online, contacting your local housing authority, or reaching out to a mortgage lender who can provide information on available programs.

Working with a real estate agent can be a game-changer in your homebuying experience.

They can walk you through the process, negotiate on your behalf, and provide useful information about the local property market.

Pre-qualification is like a rough estimate of what you could borrow, but pre-approval is more thorough.

With pre-approval examination, the lender examines your financial situation. In general, pre-approval sends a better signal to sellers that you’re a serious buyer.

Home inspection red flags include structural issues, water damage, and outdated electrical systems.

Be sure to review the inspection report carefully and discuss any concerns with the inspector.

The timeline can vary, but typically, from finding the right home to closing the deal, it takes about 21-45 days.

With proper planning, TruLoan can even accommodate rush closings in as little as 8 days. And if you’re building a new home, we’ll be there for you throughout the entire process.