Most buyers need 3-20% for a down payment, plus 2-5% for closing costs. For a $300,000 home, expect $15,000-$75,000 total depending on your loan type. FHA loans require as little as 3.5% down, while conventional loans typically need 5-20%. Additional costs include moving expenses, home inspections, appraisals, and initial repairs or furnishings.

Minimum credit scores vary by loan type. FHA loans accept scores as low as 580 with 3.5% down, or 500-579 with 10% down. Conventional loans typically require 620 or higher for the best rates. VA and USDA loans often require 620+. Higher scores (740+) qualify you for better interest rates, potentially saving thousands over the life of your loan.

Always get pre-approved, not just pre-qualified. Pre-qualification is a quick estimate based on self-reported information. Pre-approval involves a full credit check and document verification, giving you a firm budget and making you a serious buyer in sellers’ eyes. In competitive markets, many sellers won’t even consider offers without pre-approval letters.

The home buying process typically takes 2-6 months from start to finish. This includes 4-8 weeks searching for the right property and 30-45 days from offer acceptance to closing. Cash buyers can close in as little as 1-2 weeks. Factors that impact timeline include market conditions, inspection issues, financing complications, and whether you’re buying new construction versus an existing home.

Professional inspectors check structural integrity, roof condition, HVAC systems, plumbing, electrical, foundation, and potential issues like mold, pests, or water damage. Major red flags include foundation cracks, roof leaks, outdated electrical systems, and water damage. Even minor issues provide negotiation leverage. Most buyers spend $300-500 on inspections, which can save thousands by identifying problems before purchase.

Closing costs typically run 2-5% of the purchase price and include loan origination fees, appraisal, title insurance, attorney fees, recording fees, and prepaid property taxes and insurance. Buyers usually pay most closing costs, but you can negotiate for sellers to cover some expenses. Some lenders offer no-closing-cost loans, though these come with higher interest rates.

Move-in ready homes cost more upfront but require less immediate investment and stress. Fixer-uppers offer lower purchase prices but need renovation budgets, time, and expertise. Consider your DIY skills, available time, and financial reserves. Our renovation cost guides help estimate repair expenses accurately. Many first-time buyers overestimate renovation savings and underestimate the hassle involved.

A buyer’s agent represents your interests exclusively, helping you find properties, negotiate offers, and navigate the buying process. A listing agent represents the seller. While listing agents can legally show you homes, they have a fiduciary duty to the seller, not you. Buyer’s agents are typically paid by the seller from the commission, so using one usually costs you nothing while providing valuable advocacy.