First-Time Homebuyers Guide
Everything You Need to Know Before Buying Your First Home
Author: FXBG Mortgage Guide, Last Reviewed, Written by Heather Frye
On This Page:
Mortgage Questions Answered
Should I Lock or Float?
Understanding Escrow
Living in Stafford
Living in Fredericksburg
Buying your first home is exciting—but it can also feel overwhelming. If you’ve never purchased a home before, you probably have dozens of questions.
- How much money do I need?
- Is my credit good enough?
- What monthly payment can I afford?
- Should I wait?
- What if I make a mistake?
The good news? Every homeowner bought their first home once.
My job is to guide you through every step of the process, answer your questions, and help you feel confident—not confused.
Whether you’re buying in Stafford, Fredericksburg, Spotsylvania, King George, or anywhere in Virginia, (or the 10 other states I am licensed in) this guide will walk you through everything you need to know.
Think of Buying a Home Like Building a House
Most people think buying a home starts when you walk into an open house.
It doesn’t.
It starts months before that.
Imagine you’re building a house with LEGOs.
If you don’t build a solid foundation first, everything else falls apart.
Buying a home works the same way.
There are 8 simple steps, and we'll walk through each one together.
How Much Money Do I Really Need?
One of the most common questions I hear is:
“Heather…how much money do I actually need?”
The answer depends on several factors:
- Purchase price
- Loan program
- Down payment
- Closing costs
- Seller concessions
- Gift funds
- Available first-time buyer assistance
Many buyers are surprised to learn they need much less than they expected.
Common First-Time Buyer Mistakes
Avoid these common pitfalls:
❌ Looking at homes before getting pre-approved
❌ Financing furniture before closing
❌ Changing jobs during the loan process without discussing it
❌ Opening new credit cards
❌ Making large unexplained deposits
❌ Assuming you need 20% down
❌ Choosing a payment that stretches your budget too thin
No matter what your situation is, there is a home financing solution for you. We are ready to guide you through your options and get you the best deal possible!
Download My Free First-Time Homebuyer Guide
Looking for an easy-to-follow checklist?
📥 Download my First-Time Homebuyer Guide for a step-by-step roadmap from pre-approval to closing.
Frequently Asked Questions
What credit score do I need to buy a home?
The answer depends on the loan program, but a credit score of 620 or higher generally provides the most financing options and gives you the best opportunity for loan approval. If your score is lower, don’t assume you can’t buy a home. We can often work with buyers with credit scores as low as 580 using an FHA loan with a minimum 3.5% down payment. If you’re not quite ready, I’ll help you develop a plan to improve your credit so you can qualify when the time is right.
Do I need 20% down?
Absolutely not! This is one of the biggest myths about buying a home.
In reality, very few of my first-time homebuyers put 20% down. Many buyers purchase a home with as little as 3% down on a Conventional loan or 3.5% down with an FHA loan. Eligible military veterans may qualify for 0% down VA financing, and USDA loans also offer 100% financing in eligible rural areas.
We’ll review your goals and determine the best loan program for your situation.
How much are closing costs?
Closing costs vary depending on your purchase price, loan program, and location, but a good rule of thumb is to budget 3-5% of the purchase price.
For example, if you’re purchasing a $300,000 home, you should estimate approximately $9,000-$15,000 in total closing costs before considering any seller concessions, lender credits, or down payment assistance programs that may reduce your out-of-pocket expenses.
Every situation is different, and I’ll provide a detailed estimate before you ever make an offer on a home.
Can I use gift money?
Yes! Most mortgage programs allow family members to provide gift funds toward your down payment and/or closing costs.
Gift funds are a great option for many first-time homebuyers. There are documentation requirements, but I’ll walk you through exactly what’s needed and determine whether gift funds can be used with your loan program.
Should I get pre-approved before looking at homes?
Yes—always.
Getting pre-approved before you start house hunting helps you understand your budget, estimate your monthly payment, and identify any issues before you fall in love with a home. It also makes your offer much stronger when competing against other buyers.
I always recommend making pre-approval your very first step.
How long does it take to buy a home?
Most home purchases take 30 to 45 days from the time your offer is accepted until closing.
However, everyone’s timeline is different. Some buyers spend several months preparing financially before purchasing, while others find their perfect home the first weekend they begin looking. The key is making sure you’re prepared before you start shopping.
Can I buy a home if I have student loans?
Yes.
Having student loans does not automatically prevent you from qualifying for a mortgage. What matters most is how those payments fit into your overall budget and debt-to-income ratio.
Even if your loans are deferred or you’re on an income-driven repayment plan, there are financing options available. We’ll review your specific situation and determine what works best.
Should I wait for interest rates to drop?
Trying to time the market is almost impossible.
Interest rates go up and down, but home prices and inventory change too. Waiting for lower rates could mean paying more for the home you want or facing increased competition from other buyers.
If buying a home makes financial sense for your family today, it often makes more sense to purchase the home you love and refinance later if interest rates improve.
How much house can I afford?
The amount you qualify for and the amount you should spend are often two different numbers.
We’ll review your income, monthly expenses, down payment, and financial goals to determine a comfortable monthly payment—not simply the maximum amount a lender will approve. My goal is to help you buy a home you can comfortably afford while still enjoying your life after closing.
What happens after my offer is accepted?
Once your offer is accepted, your loan moves into the mortgage process.
This typically includes:
- Home inspection
- Loan processing
- Home appraisal
- Underwriting review
- Conditional approval
- Final approval (Clear to Close)
- Closing Day
Throughout the process, I’ll keep you informed every step of the way so you always know what’s happening and what comes next.
Can I buy a home if I've had a bankruptcy or foreclosure?
Yes! A previous bankruptcy or foreclosure does not automatically prevent you from buying a home again.
In fact, many homeowners successfully purchase another home after experiencing financial hardship. Depending on the type of bankruptcy or foreclosure, the loan program you choose, and how much time has passed, you may already be eligible for financing.
Common factors we’ll review include:
- The type of bankruptcy (Chapter 7 or Chapter 13)
- When your bankruptcy or foreclosure was discharged or completed
- Your current credit score
- Your payment history since the event
- Your income and employment
- Your down payment and available assets
Every situation is unique, and there isn’t a one-size-fits-all answer. The good news is that you don’t have to figure it out on your own.
I’ve helped many buyers who thought homeownership was no longer possible after a financial setback. The first step is simply having a conversation so we can review your situation, explain your options, and, if needed, create a personalized plan to help you qualify for a mortgage.
