Your first home, step by step
Buying your first home shouldn't feel overwhelming. Here's exactly how it works — from your first question to the day you get the keys.
The Crush Mortgage First-Time Homebuyer Guide
A polished, share-ready PDF from the Crush Mortgage team — hand it or email it to any buyer.
You're closer than you think
Most first-time buyers overestimate what they need and underestimate what they qualify for. This guide walks you through every step in plain English so you can move forward with confidence. When you're ready, Shannon Daniele and the Crush Mortgage team are here to help.
Fastest first step
Get pre-approved to unlock your real budget — free and no obligation.
8 steps from “maybe” to move-in
- 1
Get pre-approved first
Before you tour a single home, a pre-approval tells you your real budget and shows sellers you're serious. It's free and usually same-day.
Start a pre-approval → - 2
Know your true monthly number
Your payment is more than principal and interest — it includes taxes, insurance, and sometimes PMI or HOA dues. Run the numbers so there are no surprises.
Try the payment calculator → - 3
Pick the right loan program
Conventional, FHA, VA, USDA — each has different down payment and credit requirements. The right fit can save you thousands.
Compare loan programs → - 4
Shop with your agent
Tour homes inside your approved range. Your agent negotiates, spots red flags, and keeps the process moving.
- 5
Make a strong offer
A verified pre-approval makes your offer stand out. Your agent helps you decide price, contingencies, and earnest money.
- 6
Inspection & appraisal
An inspection protects you from surprises; the lender's appraisal confirms the home's value. Either can reopen negotiations.
- 7
Underwriting & final approval
The lender verifies everything one last time. Avoid big purchases or new credit during this window — it can affect your approval.
- 8
Clear to close & get the keys
Do a final walkthrough, review your Closing Disclosure, bring your funds and ID, sign — and you're a homeowner.
The real cost of buying
Beyond the down payment, here's what to plan for. Not every line applies to every buyer — we'll give you exact numbers up front.
0% – 20%
Down payment
Less than you think — many programs start at 3% or even $0 down for eligible buyers.
2% – 5%
Closing costs
Lender, title, and escrow fees. Sometimes the seller can help cover these.
1% – 3%
Earnest money
A good-faith deposit with your offer that's credited back at closing.
$700 – $1,200
Inspection & appraisal
Paid during escrow to verify the home's condition and value.
0 – 2 months
Cash reserves
Some loans want to see a cushion of savings after closing.
Varies
Moving & setup
Movers, utilities, and those first furniture purchases — budget a little extra.
You probably don't need 20% down
It's the most common myth in homebuying. Plenty of programs let first-time buyers in with far less — and some with nothing down at all. The right program depends on your goals, credit, and location.
3%
Conventional (first-time)
3.5%
FHA
0%
VA (eligible)
0%
USDA (eligible areas)
Documents to gather
- Last 30 days of pay stubs
- Two years of W-2s (and tax returns if self-employed)
- Two months of bank statements
- Government-issued photo ID
- Social Security number
- Proof of any additional income (bonus, commission, etc.)
- Gift letter, if using gift funds for the down payment
Common first-timer mistakes
- !Shopping before you're pre-approved — you may fall for a home outside your budget.
- !Making a big purchase (car, furniture on credit) during underwriting.
- !Changing jobs or opening new credit lines mid-process.
- !Skipping the home inspection to make an offer more competitive.
- !Forgetting to budget for closing costs and moving expenses.
- !Emptying your savings — lenders like to see reserves left over.
Terms you'll hear
Pre-approval
A lender's written estimate of how much you can borrow, based on verified income and credit.
APR vs. rate
The interest rate is the cost of borrowing; APR bundles in certain fees, so it's slightly higher.
PMI
Private mortgage insurance — usually required with less than 20% down on a conventional loan, and it can drop off later.
Escrow
A neutral account that holds funds (and later your taxes/insurance) during and after the transaction.
DTI
Debt-to-income ratio — your monthly debts divided by gross income; lenders use it to size your loan.
Contingency
A condition in your offer (inspection, appraisal, financing) that lets you back out if it isn't met.
Frequently asked
How much do I really need for a down payment?+
Often far less than 20%. Conventional loans can start at 3% down, FHA at 3.5%, and VA/USDA at 0% for those who qualify. We'll help you find the lowest-cost path for your situation.
Does getting pre-approved hurt my credit?+
A pre-approval involves a credit check, which may cause a small, temporary dip. Multiple mortgage inquiries in a short window are typically counted as one, so it's safe to shop.
What credit score do I need?+
It varies by program — some start around 580, others prefer 620+. A higher score usually means a better rate, but there are options across the spectrum.
How long does buying a home take?+
From pre-approval to keys is commonly 30–45 days once you're under contract, though it depends on the home, your loan, and the market.
What if I've had credit bumps in the past?+
You still have options. FHA loans, in particular, are more forgiving of past issues. Let's talk through your specific situation.
Ready to take the first step?
Get a free, no-obligation pre-approval and find out exactly what you can afford.
Questions? Call Shannon Daniele at (562) 317-6112
This guide is for educational purposes only and is not financial or lending advice. Program availability, costs, and timelines vary by borrower and are subject to full application and approval. Equal Housing Opportunity.