First-Time Homebuyer Guide

Your first home is
closer than you think.

Everything you need to know — from loan programs made for first-timers to the dos and don'ts of buying your first home. No jargon, no fluff.

Your Roadmap

6 Steps to Qualifying

Follow these steps and you'll be holding keys before you know it.

01

Check Your Credit

Pull your free credit report at AnnualCreditReport.com. FHA loans accept scores as low as 580. Conventional loans prefer 620+. The higher your score, the better your rate.

💡 Pay down credit card balances below 30% of the limit to boost your score fast.

02

Calculate Your Budget

A common rule of thumb: your total housing payment (PITI) should be no more than 28–45% of your gross monthly income, depending on the loan type.

💡 Use our Affordability Calculator above to see your real numbers.

03

Gather Your Documents

You'll need: 2 years of tax returns, 30 days of pay stubs, 2 months of bank statements, and a valid government ID. Self-employed? Add P&L statements.

💡 Start a folder now — having docs ready speeds up the entire process.

04

Get Pre-Approved

Pre-approval is NOT the same as pre-qualification. Pre-approval means we've actually reviewed your income, credit, and assets — making your offer much stronger.

💡 We can have your pre-approval letter ready within 24 hours of receiving your complete file.

05

Find Your Home

Work with a buyer's agent to find your home. Attend open houses, compare neighborhoods, and don't rush. The right home is worth the search.

💡 Stick to your pre-approved budget — falling in love with a home above your limit is a heartbreak waiting to happen.

06

Close on Your Home

After underwriting approval, you'll receive a Closing Disclosure at least 3 business days before closing. Review it carefully. On closing day, bring your ID and certified funds.

💡 The entire signing process takes 60 minutes or less. Then the keys are yours!

Loan Programs

Which Loan is Right for You?

Tap each program to learn what it is, who it's best for, and what the trade-offs are.

3.5%

Min. Down Payment

580

Min. Credit Score

Up to 55%

DTI Limit

~$498,257

Loan Limit (2024)

FHA loans are government-backed and designed specifically to help first-time buyers. With just 3.5% down and credit scores as low as 580, they open the door for buyers who might not qualify for conventional financing. The trade-off is mortgage insurance — you'll pay an upfront fee (1.75% of the loan) and an annual premium (0.55%), which adds to your monthly payment.

✓ Pros

  • ✓ Low 3.5% down payment
  • ✓ Accepts credit scores down to 580
  • ✓ More lenient DTI ratios
  • ✓ Gift funds allowed for down payment

✗ Cons

  • ✗ Mortgage insurance for life of loan (if <10% down)
  • ✗ Loan limits lower than conventional
  • ✗ Property must meet FHA standards
The Rules

Do's & Don'ts

These simple rules can be the difference between closing on time and losing your dream home.

DO These Things

Keep paying all bills on time

Payment history is 35% of your credit score — the single biggest factor.

Save consistently for closing costs

Plan for 2–5% of the loan amount in closing costs in addition to your down payment.

Keep your job stable

Lenders like to see 2 years of consistent employment. Changing jobs in the same field is usually fine.

Get pre-approved before house hunting

Sellers take pre-approved buyers seriously. It also keeps you from falling for homes outside your budget.

Document all large deposits

Any large deposit into your bank account will need a 'paper trail'. Keep receipts and transfer records.

Communicate with your loan officer

If anything in your life changes — job, income, new accounts — tell us immediately.

Keep credit card balances low

Try to keep balances below 30% of your credit limit. Below 10% is even better for your score.

Review your Loan Estimate carefully

You'll receive a Loan Estimate within 3 business days of applying. Read every line.

DON'T Do These

Don't open new credit accounts

New inquiries and accounts can drop your score and raise red flags with underwriting.

Don't make large purchases on credit

No new cars, furniture, or appliances on credit until after closing. This changes your DTI ratio.

Don't close existing credit accounts

Closing accounts can actually hurt your score by reducing available credit.

Don't change jobs without telling us

A job change can delay or derail your loan, especially if it changes income type (e.g., salaried to commission).

Don't deposit large sums of unexplained cash

Underwriters need to source all funds. Unexplained cash can hold up your entire loan.

Don't cosign any loans for anyone

Even if you're not making the payments, cosigned debt counts against your DTI.

Don't miss any bill payments

Even one 30-day late payment can drop your score significantly at the worst possible time.

Don't go house shopping without a budget

Touring homes above your budget makes your actual price range feel disappointing. Stay in range.

The Full Picture

What to Expect

No surprises. Here's exactly what the mortgage process feels like from your very first application.

Day 1

Application Submitted

You complete your online application and upload your documents. We'll reach out within hours to confirm receipt and let you know if anything is missing.

😊

How it feels: "A little overwhelming — totally normal. We make it easy."

Within 24 hrs

Pre-Approval Issued

We review your file and issue your pre-approval letter. You're officially a buyer. Go find your home!

😊

How it feels: "Exciting! This is real now."

Under Contract

Rate Locked & Processing

Once your offer is accepted, we lock your rate and order the appraisal. We'll request any final documents needed for underwriting.

😊

How it feels: "Busy but manageable. We handle the heavy lifting."

1–3 Weeks

Underwriting Review

Your file goes to an underwriter who reviews everything. They may ask for a few more items — called 'conditions.' This is standard and not a cause for alarm.

😊

How it feels: "Hurry up and wait. Stay patient — this is normal."

3 Days Before Closing

Closing Disclosure

You'll receive your official Closing Disclosure showing final numbers. Review it carefully and compare it to your Loan Estimate. Call us with any questions.

😊

How it feels: "So close! The finish line is in sight."

Closing Day

You're a Homeowner! 🎉

Bring your ID and certified funds. You'll sign documents (about 60 minutes), and then the keys are yours. Welcome home!

😊

How it feels: "Pure joy. You earned this."

Common Questions

FAQ

The questions every first-time buyer asks — answered honestly.

No — this is one of the biggest myths in real estate. FHA loans require just 3.5% down (or 10% if your credit score is under 580). Conventional loans can go as low as 3%. VA loans require zero down payment for eligible veterans. You do NOT need 20% to buy a home.

Ready to Start?

You've done the research.
Now let's make it happen.

Antonio is ready to guide you through every step. No pressure, no jargon — just honest guidance from a loan officer who genuinely cares.

Antonio.Acosta@NEXAmortgage.com

Your front door is closer
than you think.

Take the first step today. Whether you're buying, refinancing, or just exploring, we're here to guide you home.

Start Your Application

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  • NEXA Mortgage LLC
  • NMLS #1660690
  • Equal Housing Opportunity. All loans subject to credit approval. This is not a commitment to lend.

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