Buying your first home starts here.
Buying your first home is something most people think about long before they start the process. When you're ready to take that step, having the right guidance makes all the difference. We work with first-time buyers every day — and we'd love to work with you.
Many first-time buyers qualify for low- and zero-down options.
Three things that set the foundation.
Before you begin your home search, get a feel for these three pieces. They shape every option you'll have — and which ones make sense for you.
Understanding your budget
Your buying power is more than just your income. We look at your full picture — and what makes sense day-to-day.
- Your credit history
- Income and employment stability
- Existing debts
- Down payment and closing-cost funds
Your credit matters — but it's not everything
Credit affects your options, but it's not all-or-nothing. We work with a wide range of credit profiles every day.
- The loan programs you qualify for
- The interest rate you'll see
- Down payment requirements
Down payments may be lower than you think
The 20% myth is exactly that — a myth. Many first-time buyers qualify for far less.
- Low down-payment options (3–5%)
- Zero-down programs (for those who qualify)
- Down-payment assistance programs
Beyond the down payment, here's what to plan for.
Two things shape your real out-of-pocket: closing costs (one-time) and your monthly payment (every month). Both are simpler than they sound. Below is just a scenario for example purposes.
Closing costs
Typically 2% to 4% of the purchase price. On a $400,000 home, expect roughly $8,000–$16,000 — but this varies by state, lender, and program.
- Loan-related fees (origination, appraisal, credit report)
- Taxes and insurance prepaids
- Title and escrow services
- Recording and government fees
Your monthly payment (PITI)
Your mortgage payment isn't just principal and interest. Most monthly payments are made up of four parts:
monthly
- Principal & Interest $1,500
- Property taxes $385
- Homeowners insurance $290
- Mortgage insurance $245
Mortgage insurance applies to most loans with less than 20% down. It typically falls off automatically once you reach 20% equity on conventional loans.
Not every loan fits every buyer.
The right one depends on your financial profile and your long-term plans. Here's the short tour — then we'll match you with the program that actually fits.
FHA
Lower credit thresholds, smaller down payments. A common starting point for first-time buyers.
Learn more →VA
For active-duty service members, veterans, and qualifying spouses. Zero down, no PMI.
Learn more →USDA
Rural and many suburban areas qualify. Zero down, lower mortgage insurance for eligible borrowers.
Learn more →Conventional
A good fit for many buyers, with options that vary based on loan size and your financial profile.
Learn more →A Benchmark Loan Officer can match you with the program that actually fits.
We'll walk you through the trade-offs and recommend a loan that fits your situation — not just one that you happen to qualify for.
The four terms you'll hear most.
You'll see these on disclosures and Loan Estimates. Here's what each one actually means — in plain English.
Interest rate
The cost of borrowing the money, expressed as an annual percentage. It's what shapes most of your monthly payment.
APR
The total annualized cost — interest plus certain fees. APR makes loan offers easier to compare apples-to-apples.
Discount points
Optional upfront fees that buy down your interest rate. One point = 1% of the loan amount, typically lowering your rate ~0.25%.
Rate lock
An agreement that holds your rate steady for a set period (often 30–60 days), so a market move doesn't change your payment.
Four stages, in order.
Once you're ready to move forward, this is the path. Most loans close in about 30 days with the right preparation and responsiveness along the way.
Get pre-approved
We review your finances and establish your budget — so you know your number before you start looking.
Submit documentation
You provide supporting documents like income statements, W-2s, and bank statements. Most of it can be uploaded in minutes.
Processing & underwriting
Your loan is reviewed and finalized. Behind the scenes: appraisal, title, and the final risk review.
Closing
You sign your documents, take care of closing costs, and officially become a homeowner. And then — keys.
Get the answers first timers are looking for.
Does the calculator count my down payment as a cost?
The down payment isn’t spent — it converts to equity. The comparison accounts for it as money invested in the home rather than money lost.
What if home prices don't appreciate?
Set appreciation to 0% and compare. Even without appreciation, principal paydown builds equity — though the verdict may shift toward renting for shorter stays.
Do I qualify at the lower rate?
No — lenders qualify you at the full note rate. The buydown eases your early payments; it doesn’t change what you must qualify for.
Do I need a 20% down payment to buy a home?
No. Many buyers put down less, depending on the loan program. There are several options designed to make homeownership more accessible — including FHA (3.5% down), VA and USDA (0% for those who qualify), and conventional loans with as little as 3% down for first-time buyers.
What costs should I expect at closing?
Closing costs typically include lender fees, title services, taxes, and insurance. They generally run 2–4% of the purchase price. You’ll receive a detailed Loan Estimate ahead of time so there are no surprises.
What happens if something changes with my finances during the process?
Let your loan officer know right away. Even small changes — a new credit card, a job change, a large deposit — can impact your loan, but your team can help you understand your options and next steps before they become a problem.
What if the appraisal comes in lower than expected?
This doesn’t mean the deal is off. You may be able to renegotiate the price with the seller, adjust your loan amount, request a reconsideration of value, or explore other paths forward with your loan officer.
Ready to take the first step?
Buying your first home comes with a lot of decisions — but you don't have to navigate them on your own. We're here to answer questions, walk you through your options, and help you move forward in a way that makes sense for you.