First-Time Homebuyer Essentials: How to Land Your First Home

Buying your first house can feel like a maze, but you don’t need to be a finance whiz to get through it. Below you’ll find the most useful steps, from checking your credit to grabbing a grant, all written in plain English.

Figure Out What You Can Actually Afford

Start with your income, monthly bills and how much you can save each month. A good rule of thumb is to keep your mortgage payment under 30% of your net income. Use an online calculator – plug in your salary, existing debts and the interest rate you expect (6‑8% is common in 2025) – and you’ll see a realistic price range.

Don’t forget the extra costs: council tax, insurance, maintenance and moving expenses. If you’re earning $36,000 a year, for example, you’ll likely qualify for a home around £120‑150k after accounting for a 10‑20% down payment.

Boost Your Credit Score Before Applying

Lenders love a solid credit score. Aim for at least 620 for a basic mortgage, but 720 or higher gets you better rates. Pay down credit‑card balances, avoid opening new accounts a month before you apply, and check your credit report for errors.

If you’re not there yet, consider a secured credit card or a small personal loan (like a $30,000 loan) to build history. Pay it off quickly and your score should climb.

Take Advantage of Down‑Payment Help

Many first‑time buyers don’t have a 20% deposit saved. That’s where grants and assistance programs step in. Virginia offers a statewide down‑payment assistance plan that can cover up to 5% of the purchase price. North Carolina has a similar grant that doesn’t need to be repaid if you stay in the home for three years.

Even if you live elsewhere in the UK, check local council schemes – they often match a portion of your deposit or provide interest‑free loans. The key is to read the eligibility criteria carefully and gather the required documents early.

Choose the Right Mortgage and Lender

Not all banks treat first‑time buyers the same. In 2025, a handful of lenders stand out for low fees and flexible terms. Look for programs that waive arrangement fees, offer 95% financing or provide a free valuation.

Beware of FHA‑style loans if you’re in the UK – they can come with higher insurance premiums and property limits. Weigh the pros and cons before you lock in.

Pick an Estate Agent Who Gets You

All agents aren’t created equal. A good one will ask about your budget, show you homes within range, and be transparent about fees. Use a checklist: do they have recent sales in your area? Do they provide a clear valuation? Ask for references and trust your gut if anything feels off.

Remember, you’re the client. If an agent pushes a property that stretches your budget, politely say you’re not interested and move on.

By following these steps – budgeting realistically, polishing your credit, hunting for grants, comparing lenders and finding a trustworthy agent – you’ll cut down the confusion and move faster toward the keys to your first home.

Ready to start? Grab a notebook, jot down your numbers, and begin the search with confidence. Your first house is closer than you think.