Buying a first home follows five stages: decide whether and where to buy, save for the down payment and closing costs, get your mortgage ready, make an offer, and close. Most buyers take three to six months from the first serious search to getting the keys, plus whatever time they need to save.
Stage 1: Thinking about buying
Start by deciding whether buying makes sense for you now. Renting vs. buying walks through the trade-offs, and the rent vs. buy calculator runs the numbers for how long you expect to stay.
Then set a realistic budget. How much house can I afford? explains the 28/36 rule, and the affordability calculator turns your income, debts and savings into a price range. Use where can I afford to buy? and the town finder to see which areas fit.
Try it: Homebuying timelineEnter your target move date and see what to do each month, from saving and credit to pre-approval, house hunting and closing.Stage 2: Saving
You’ll need cash for three things: the down payment, closing costs (about 2% to 5% of the price) and reserves to keep after closing. Many first-time buyers put down 3% to 10%, not 20%; see how much should I put down?
- See how long it will take with the down payment timeline.
- Check for help: down payment assistance programs offer grants and forgivable loans to first-time buyers in every state.
- Estimate closing costs where you’re buying with the closing cost estimator.
Stage 3: Getting your mortgage ready
Your credit score shapes your rate and loan options. Credit score to loan options shows which loans fit your score, and the credit score cost calculator shows what a higher score is worth.
Compare loan types: FHA vs. conventional for most first-time buyers, VA loans if you’ve served, and USDA loans in eligible rural areas. Then get pre-approved; pre-qualified vs. pre-approved explains the difference, and the document checklist lists what to gather.
Stage 4: Shopping and making an offer
Check how competitive each market is on its ZIP code page before you tour. When you find the one, use can I win this house? and the offer strength score to shape an offer that’s competitive without overpaying. Understand your protections first: the contingency risk explainer covers inspection, appraisal and financing contingencies.
After your offer is accepted, you’ll pay earnest money, schedule the home inspection, and your lender orders the appraisal.
Stage 5: Closing
Expect 30 to 45 days from accepted offer to closing for most mortgages. You’ll receive a Closing Disclosure at least three business days before closing; compare it with your Loan Estimate. Confirm your cash to close, and verify wiring instructions by phone before sending money. The closing day checklist and what to bring cover the final steps.
First-time buyer advantages
You’re usually considered a first-time buyer if you haven’t owned a home in the last three years, so many past owners qualify too. That can open lower down payment loans (3% conventional, 3.5% FHA), state housing finance agency loans and down payment assistance. Some states also offer first-time buyer savings accounts or tax credits; ask a tax professional what applies where you live.
Mistakes to avoid
- Shopping before you’re pre-approved.
- Opening new credit or changing jobs between pre-approval and closing.
- Spending all your savings on the down payment and leaving nothing for repairs.
- Comparing lenders on rate alone; compare full costs with compare mortgage offers.
Common questions
Who counts as a first-time home buyer?
Usually anyone who hasn’t owned a home in the past three years, so many past owners qualify for first-time buyer programs.
How much do I need to buy my first home?
Often 3% to 5% down plus 2% to 5% of the price for closing costs, and some savings left over. Down payment assistance can cover part of it.
What should I do first?
Check your credit, set a budget you’re comfortable with, and start saving; get pre-approved before you start touring seriously.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.