Here's your step-by-step plan to buy your first home.
No guesswork — 9 concrete steps with real numbers, common myths debunked, and direct links to get started today.
3%
Minimum down payment (conventional)
580+
Credit score for FHA loan
60%
Of first-timers received down payment help
~6 mo
Typical time from prep to closing
Pull Your Free Credit Reports
Before a lender sees anything, you should. Request your free reports from all three bureaus — Equifax, Experian, and TransUnion — through the only federally authorized site. Review each one carefully for errors, unknown accounts, or old collections. Disputing mistakes before you apply can raise your score quickly and costs nothing.
- You're entitled to one free report per bureau per year at AnnualCreditReport.com
- Check all three — errors on one bureau won't appear on the others
- Dispute any inaccuracies directly with the bureau in writing
- Common errors: accounts you didn't open, incorrect balances, payments wrongly marked late
Do this before you do anything else. You can't fix what you don't know about, and lenders will see exactly what's in these reports.
Understand Your Credit Score
Your credit score is the single biggest lever on your mortgage interest rate. A difference of 60 points can mean hundreds of dollars per month. Here's exactly what lenders look for — and what your score unlocks.
500+
FHA loan minimum (10% down required)
580+
FHA loan (3.5% down)
620+
Conventional loan minimum
740+
Best rates & terms
- Score of 670+ usually qualifies for decent conventional rates
- Score of 720+ puts you in the preferred borrower tier
- Score of 800+ unlocks the very best loan pricing available
- VA and USDA loans have no official minimum, but most lenders prefer 620+
Myth
“You need perfect credit to buy a home.”
Reality
You can get an FHA loan with a score as low as 580. Focus on where you are and move the needle — even 20–40 points can make a meaningful difference in your rate.
The fastest ways to improve your score: pay down credit card balances below 30% of the limit, don't close old accounts, and don't open new credit in the 6 months before applying.
Verify Your Income & Employment History
Lenders want to see stable, documentable income — typically 2 years in the same field. Gather these documents now so you're not scrambling when it's time to apply.
- Last 2 years of W-2s or 1099s
- Last 2 years of full tax returns (all pages, all schedules)
- Last 30 days of pay stubs
- Last 2–3 months of bank statements for all accounts
- Statements for retirement and investment accounts
- Self-employed? 2 years of returns showing consistent income — lenders average the two years
Recently changed jobs? That's usually fine if you stayed in the same industry. A gap in employment or a brand-new career field can complicate approval — talk to a lender early rather than finding out at application time.
Calculate What You Can Realistically Afford
Affordability isn't just about qualifying for a loan — it's about a payment you can sustain while still living your life. Factor in the true and total cost of ownership, not just the mortgage.
- Budget for property taxes — in Georgia, these vary significantly by county
- Budget for homeowners insurance: average $1,500–$2,500/year depending on home size and value
- Add HOA fees if applicable — can range from $100 to $500+/month
- Maintenance reserve: budget 1% of home value per year for repairs
- Don't forget utilities — they're often higher in a house than an apartment
- Use a mortgage calculator to model different scenarios before you start shopping
The best way to know your real number isn't a formula — it's getting pre-approved. A lender will review your full financial picture and tell you exactly what you qualify for.
Save for Your Down Payment — You Don't Need 20%
The 20% down payment is one of the most persistent myths in real estate. In 2024, nearly half of first-time buyers put less than 20% down — and 18% put down 5% or less. Here's what the real options look like.
3%
Conventional loan minimum down
3.5%
FHA loan minimum (580+ score)
0%
VA / USDA loans for eligible buyers
3–6%
Closing costs (separate from down payment)
- PMI (private mortgage insurance) costs roughly 0.5–1.5% of the loan per year — it's cancelable once you hit 20% equity
- FHA loans require mortgage insurance for the life of the loan if you put less than 10% down
- Start saving at least 6 months before you plan to begin shopping
- Keep your down payment funds in a liquid, stable account — not invested in stocks
Myth
“You need 20% down to buy a home.”
Reality
In 2024, 48% of first-time buyers put less than 20% down. You can buy with as little as 3–3.5%. The trade-off: loans with less than 20% down typically require private mortgage insurance (PMI) until you reach 20% equity.
Don't drain your emergency fund for the down payment. Lenders want to see cash reserves after closing — having 2–3 months of housing costs saved beyond your down payment strengthens your application.
Explore Down Payment Assistance Programs
Most first-time buyers don't realize how much help is available. Down payment assistance (DPA) comes in the form of grants, forgivable loans, and low-interest second loans — and it's more accessible than most people think.
60%
Of first-time buyers received some form of DPA
$1,000s
To $10,000s available depending on program
- Georgia DCA (Dept. of Community Affairs) offers programs specifically for first-time buyers
- Many programs have income limits — but they're often higher than buyers expect
- Some programs require completing a homebuyer education course (free or low-cost)
- DPA can be stacked with FHA, conventional, VA, or USDA loans
- Ask David for current Savannah-area program availability — these change frequently
Apply for DPA early — some programs have limited funding and run out mid-year. Your lender needs to be approved to offer these programs, so mention it upfront.
Get Pre-Approved (Not Just Pre-Qualified)
Pre-qualification is a quick estimate based on self-reported information. Pre-approval is a real underwriter review of your documents — it carries actual weight with sellers and tells you your true budget. When you're 60–90 days from being ready to buy, get pre-approved.
- Pre-approval requires: income docs, bank statements, ID, and a credit pull
- Your pre-approval letter shows sellers you're serious and financially qualified
- Shop 2–3 lenders — rates and fees vary more than most buyers expect
- Multiple mortgage credit pulls within a 45-day window count as a single inquiry
- Pre-approvals are typically valid for 60–90 days; update before it expires
- Avoid major purchases, new credit, or job changes after pre-approval — it can void it
Pre-qualification ≠ pre-approval. Sellers and their agents know the difference. In a competitive market, a pre-qualification letter is nearly meaningless. Get pre-approved.
Connect with Your Agent & Start Your Search
With pre-approval in hand, you're ready. A buyer's agent costs you nothing — the seller pays the commission — but having the right one is the difference between a smooth transaction and a stressful one. David works with first-time buyers in Savannah every day and will guide every step from here.
- Build your "Needs" list (non-negotiables) and "Wants" list (nice-to-haves) before your first showing
- Remember: you can't change the lot, the location, or the price you paid — prioritize those
- Don't skip homes listed as "pending" — contracts fall through
- Take notes, photos, and video at every showing
- Your agent negotiates not just price but terms, contingencies, and repairs
8 Mistakes First-Time Buyers Make
These are the most common — and most avoidable — pitfalls.
Not checking credit early enough
Errors on your credit report can take 30–60 days to resolve. Check it months before you plan to apply, not the week before.
Skipping pre-approval and shopping first
Falling in love with a home before knowing your budget leads to disappointment — or worse, overextending.
Assuming you need 20% down
You can buy with 3–3.5% down. Many first-timers wait years unnecessarily because of this myth.
Not asking about down payment assistance
60% of first-time buyers receive some form of DPA. Most never ask. Always ask.
Making large purchases before closing
New car, new furniture, new credit card — any of these can shift your DTI and void your loan approval days before closing.
Only looking at one lender
Rate differences between lenders can cost or save you tens of thousands over the life of a loan. Get at least 2–3 quotes.
Overlooking the total cost of ownership
Property taxes, insurance, HOA fees, maintenance, and utilities can add $500–$1,500+/month beyond the mortgage payment.
Letting emotions drive the offer
It's easy to overbid on a home you love. Trust your agent's comps — paying over value is hard to recover from.
Ready to take the first step?
David works with first-time buyers in Savannah every day. Call, text, or email — he'll walk you through exactly where you stand and what to do next, no pressure.