First-Time Home Buyer Guide 2025
Your complete step-by-step guide to buying your first home. From pre-approval to closing in 30-45 days. We walk you through every stage.
NMLS 1577754 • Licensed in NJ, NY, PA, CT, MD, OH, GA
The Home Buying Timeline
From pre-approval to keys in hand: 30-45 days after finding your home
Pre-Approval
1 Day
Get approved before house hunting
House Hunting
4-12 Weeks
Find your perfect home
Under Contract
30-45 Days
Inspection, appraisal, final approval
Closing Day
1-2 Hours
Sign papers, get keys
8 Steps to Buying Your First Home
Get Pre-Approved for a Mortgage
Contact a lender (like us!) before house hunting. Pre-approval shows sellers you're serious and tells you exactly how much you can borrow.
What You'll Need:
- 2 years tax returns and W-2s
- 2 months bank statements (all accounts)
- Recent pay stubs (30 days)
- Photo ID and Social Security number
Timeline: 24 hours for pre-approval letter
Find a Real Estate Agent
Interview 2-3 agents who specialize in your target area. Choose someone with first-time buyer experience, strong local knowledge, and good communication.
Questions to Ask Agents:
- How many first-time buyers have you helped?
- What's the average time to close in this market?
- How will you help me negotiate?
- Can you recommend inspectors, attorneys, and other professionals?
Cost: Free - seller typically pays agent commissions
Search for Homes
Tour homes, attend open houses, and research neighborhoods. Consider commute, schools, property taxes, and future resale value.
What to Look For:
- • Location and neighborhood quality
- • Condition of roof, HVAC, foundation
- • Layout and room sizes
- • Storage and parking
- • Property taxes and HOA fees
Red Flags to Avoid:
- • Water damage or mold
- • Foundation cracks
- • Electrical/plumbing issues
- • Poor maintenance
- • Homes listed well above comps
Timeline: 4-12 weeks average (varies by market and buyer)
Make an Offer
Work with your agent to submit a written offer. Include earnest money deposit (1-3% of price), proposed closing date, and contingencies.
Key Offer Components:
- Purchase Price: Based on comps and market conditions
- Earnest Money: 1-3% deposit showing good faith
- Contingencies: Inspection, appraisal, financing
- Closing Costs: Who pays what (negotiate with seller)
Timeline: Seller typically responds within 24-48 hours
Home Inspection
Hire a licensed inspector to examine the property. Review the report carefully and negotiate repairs or credits with the seller.
Inspection Covers:
- • Roof and attic
- • Foundation and basement
- • HVAC systems
- • Electrical and plumbing
- • Windows and doors
Your Options:
- • Request seller repairs
- • Ask for closing cost credit
- • Negotiate lower price
- • Walk away (if major issues)
Cost: $300-$500 • Timeline: 7-10 days
Appraisal
Your lender orders an appraisal to confirm the property value supports the loan amount. The appraiser inspects the home and compares it to recent sales.
If Appraisal Comes in Low:
- Negotiate lower purchase price with seller
- Bring additional cash to cover the gap
- Challenge the appraisal with comparable sales
- Walk away if appraisal contingency included
Cost: $400-$600 • Timeline: 7-14 days
Final Loan Approval & Clear to Close
Underwriter reviews your complete file and issues final approval ("clear to close"). Provide any last documents requested and lock your interest rate.
During Underwriting - DON'T:
- ✗Change jobs or quit your job
- ✗Make large purchases or open new credit accounts
- ✗Move money between accounts without notifying lender
- ✗Miss payments on any bills
Timeline: 7-14 days after appraisal
Closing Day
Sign loan documents, pay closing costs and down payment, and receive the keys to your new home. Congratulations, you're a homeowner!
What to Bring to Closing:
- Government-issued photo ID (driver's license, passport)
- Cashier's check or wire transfer confirmation for closing costs
- Proof of homeowners insurance
- Copy of purchase agreement and inspection report
Timeline: 1-2 hours to sign all documents
Ready to Start Your Home Buying Journey?
Get pre-approved in 24 hours. We'll guide you through every step from application to closing. First-time buyers are our specialty.
Jimmy Joseph MBA • NMLS 1577754 • jjoseph@cmghomeloans.com