RealCostIQ

Buyer Guide

First-Time Home Buyer Guide

Buying your first home is one of the biggest financial decisions you'll make. This guide walks you through every step — with free calculators at each stage so you go in with clear numbers, not guesses.

The 7 Steps to Buying Your First Home

01

Check Your Finances

Review your credit score, calculate your debt-to-income ratio, and determine how much you can afford. Most lenders require a DTI below 43% and a minimum credit score of 620.

DTI Calculator
02

Save for a Down Payment

Conventional loans require 3–20% down. FHA loans allow as low as 3.5% with a 580+ credit score. Don't forget closing costs — typically 2–5% of the purchase price.

Down Payment Savings Calculator
03

Get Pre-Approved

A pre-approval letter shows sellers you're serious and sets your realistic price ceiling. Use our prequalification calculator to estimate what you may qualify for before talking to a lender.

Mortgage Prequalification Calculator
04

Understand Your Loan Options

Compare FHA vs conventional loans, fixed vs adjustable rates, and 15 vs 30-year terms. Each has different costs, requirements, and long-term implications.

FHA vs Conventional Calculator
05

Calculate True Monthly Costs

Your mortgage payment is just the start. Factor in property taxes, homeowner's insurance, PMI (if down payment < 20%), and HOA fees.

Mortgage Calculator
06

Budget for Closing Costs

Closing costs include lender fees, title insurance, appraisal, prepaid taxes, and more. Budget 2–5% of the purchase price on top of your down payment.

Closing Costs Calculator
07

Plan for Ongoing Maintenance

New homeowners are often surprised by maintenance costs. Budget 1–2% of home value per year for repairs, replacements, and upkeep.

Home Maintenance Budget Calculator

Typical First-Time Buyer Costs at a Glance

Cost ItemTypical RangeWhen Due
Down payment (3.5% FHA)3.5% of purchase priceClosing
Down payment (conventional)3–20% of purchase priceClosing
Closing costs2–5% of purchase priceClosing
Home inspection$300–$600During contract
Appraisal fee$400–$700During underwriting
Moving costs$1,000–$5,000+Move-in
Initial maintenance reserve1–2% of home value/yrOngoing
PMI (if < 20% down)0.5–1.5% of loan/yrMonthly until 20% equity