First-Time Homebuyers

Resources to help everyone walk through the entire homebuying process, from understanding key terms and finding a mortgage lender, to closing and moving into your first home.

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Key Terms

Frequently Asked Questions

  • How much should I save before buying a house?

    The main factors to save for when buying a house are earnest money—the deposit you make when putting an offer on a home—the rest of your down payment, and closing costs. Most earnest money deposits average between 1% and 3% of the home price, and closing costs average about 2% to 5% of the purchase price of the home. As for the down payment, experts suggest saving at least 20% of the price of the home, but depending on your situation, less than 20% may work too.

  • What are the prepaid costs when buying a home?

    Prepaid costs—also referred to as prepaids—are upfront cash payments that you make in addition to your down payment, in order to obtain a mortgage. These can include property taxes, hazard insurance, private mortgage insurance, and special assessments. They are paid at closing and placed into an escrow account to later cover the expenses related to a mortgage.

  • What costs are involved in buying your first home?

    The biggest costs to plan for when buying your first home include the down payment and the monthly mortgage payments. You will also pay various one-time fees, including those related to closing costs, mortgage application, home inspection and appraisal, and more. Before finalizing your purchase, speak with your real estate agent, lender, or attorney in order to understand all costs involved.

  • What questions should you ask when buying a home?

    Before making an offer on a house, a buyer should ask specific questions about three main things: price, home condition, and location. When asking about location, for example, you may ask about where the nearest schools are located or whether or not the house is in a flood zone.

  • How much money do you need to put a down payment on a house?

    When it comes to the down payment, most experts suggest that you should be willing to put down 20% of the purchase price of a home. While putting 20% down is not the only way to achieve homeownership, when you put that much down, you’ll avoid paying for private mortgage insurance. To calculate the amount you would need for a 20% down payment, multiply your home’s purchase price by 20% (or 0.20).

  • When is the appraisal done when buying a home?

    An appraisal is a process, solidified by a written document, that shows an opinion of how much a property is worth. Typically, the appraisal happens after an offer has been made and the home in question has been inspected. It’s not always required, but recommended. The buyer usually has to pay for and arrange the appraisal, and once it is complete, the final report is sent directly to the lender.

  • What are the tax deductions associated with buying your first home?

    The IRS offers deductions to those who qualify for the prepaid mortgage interest. For instance, the IRS allows certain first-time homebuyers to avoid a specific tax penalty if they withdraw money from an IRA to help pay for their home. In order to qualify, though, you must meet the specific definition that the IRS uses for “first-time homebuyer.”

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FHA Loan
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A First-Time Homebuyer's New Construction Guide
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Appraisal
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First-Time Homebuyer Programs
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First-Time Homebuyer Act of 2021
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Mortgage
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How To Find the Best Place To Buy a House
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First-Time Homebuyer Qualifications
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Buying a Home? Get Help Covering Closing Costs
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How To Save for a House
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First-Time Homebuyer Loan
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Pros and Cons of First-Time Homebuyer Loans
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What Is a VA Loan?
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Your Guide To Buying a Townhouse
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5 Tips for Making an Offer on a House
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Do You Get a Tax Break for Buying a House?
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How Much Does a First-Time Homebuyer Need for a Down Payment?
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How To Qualify for a Home Loan
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Here’s How To Win a Bidding War on Your First Home
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Steering in Real Estate
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What To Know About First-Time Homebuyer Classes
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How To Buy a House When Self-Employed
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First-Time Homebuyers: Should You Use Your Roth IRA for the Purchase?
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How To Budget for a House
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Buying Your First Home? Check Out These Mortgage Tips
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Types of Home Loans for First-Time Homebuyers
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Fair Housing Act
This illustration describes all about home down payments including "Types of minimum down payments: VA Loans, FHA Loans, Conventional Loans," and "Where you can get money for a down payment: Gifts or loan from family, Personal loan, Withdrawal from retirement accounts, and Sell other assets."
How Much To Put Down on a House
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What Are the Benefits of Being a First-Time Homebuyer?
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First-Time Homebuyer
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Qualified Mortgage
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When Is the Best Age to Buy a Home?
illustration of woman calculating home-buying fees
Fees You Need To Know About When Buying a Home
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Buying a House Online: Where To Look and How To Do It
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Buyer's Market
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Housing Expense Ratio
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What Is the Minimum Down Payment for a Conventional Loan?
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Chase Homebuyer Grant
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How To Buy a House With a Friend
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What First-Time Homebuyers Should Look for in a Real Estate Agent
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Can You Borrow From Your 403(b) To Buy a House?
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Answers to Common Homeowners Insurance Questions
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How To Choose the Right Location for a Home
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Can You Get Out of an FHA Loan?
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What To Consider Before Buying a Duplex as a First Home
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What Is Mortgage Preapproval?
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Monthly Home Expenses: How To Budget for a First House
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Pros & Cons of Mortgage Down Payment Assistance Programs
 
 
 
 
Page Sources
  1. U.S. Department of Housing and Urban Development. “Common Questions From First-Time Homebuyers.”

  2. National Association of Realtors. “Upfront Cost of Buying a Home.”

  3. H&R Block. “Tax Deductions For Home Purchase.”