First-Time
Buyer Guide

A lender gives a preliminary assessment of what it may lend after reviewing financial information. It helps frame your search, but is not a guaranteed loan. Approval can still depend on the property, updated documents, and other conditions. Ask what was verified and when the letter expires.

The portion of the purchase price you pay from your own funds rather than borrowing. The amount depends on the loan and your situation. It is separate from closing costs. Ask a lender how different amounts affect the payment, mortgage insurance, and funds remaining after closing.

Principal is the amount borrowed that remains to be repaid. Interest is the charge for borrowing. Your full housing expense can also include taxes, homeowners insurance, mortgage insurance, and association dues. Compare the whole payment and ongoing costs, rather than principal and interest alone.

Expenses associated with completing the purchase and loan, separate from the down payment. They may include lender charges, title and escrow services, recording fees, and prepaid items. Review the Loan Estimate and Closing Disclosure with your lender; cash to close also reflects deposits, credits, and other adjustments.

Lenders use these labels differently. Either can describe a preliminary lending assessment, with different levels of verification. Ask whether income, assets, and credit were reviewed, what conditions remain, and whether the estimate is based on information you supplied or documents the lender checked.

Write down your preferred locations, essential features, and flexible preferences. Consider your daily routine and moving timing. Discuss your budget with a lender and your search criteria with your agent. Keep a short comparison sheet so that attractive photos do not outweigh practical needs.

Notice layout, natural light, storage, noise, accessibility, and visible signs of maintenance. Ask about the age of major systems and available records. Write down concerns and revisit at another time if helpful. A tour is an observation opportunity; it does not replace a professional inspection.

Dues charged by a homeowners association for shared responsibilities or services. Coverage varies: ask for the budget, governing documents, reserve information, rules, and any assessments. Review both ongoing dues and restrictions that affect how you would use the property.

Use the same checklist for every home: location, space, condition, price, estimated ongoing costs, and likely repairs. Separate confirmed facts from unanswered questions. Ask your agent about comparable sales and property information, then weigh each home against your own priorities.

A written proposal setting out price, financing, deposits, timing, contingencies, and other terms. A seller may accept, reject, or counter it. Review every provision with your agent and seek legal guidance when needed; do not assume a verbal discussion settles the agreement.

A deposit associated with the purchase agreement, commonly held by an escrow holder. Its amount, due date, and treatment depend on the contract. A refund is not automatic if the purchase falls through. Understand the relevant terms before committing or transferring funds.

Contract conditions addressing matters such as financing, appraisal, or investigations. They define rights and procedures, including deadlines. Discuss what each condition protects and what removing it means. Whether you can cancel or recover a deposit depends on the actual agreement and circumstances.

The agreed terms guide the next steps. Organize deadlines, arrange investigations, provide requested lender documents, and review disclosures and title information. Stay in touch with your agent, lender, and escrow team; acceptance starts the transaction work rather than guaranteeing that it will close.

An inspector evaluates accessible parts of the home and reports observed condition and concerns. The report may recommend specialist evaluations. Ask about the inspection scope and limitations, attend if possible, and review findings promptly. An inspection is not a guarantee against future problems.

An opinion of property value, often obtained for a lender as part of financing. It serves a different purpose from a condition inspection. If the value differs from the agreed price, discuss the loan implications and contractual options with your lender and agent.

They provide information about known conditions and other property matters. Read them alongside inspection reports and available records; ask about unclear or missing information. Required disclosures and exemptions vary. A disclosure does not replace your own investigation or an inspector’s evaluation.

First understand its significance, possible specialist review, and potential cost. Then discuss available options and deadlines with your agent. Depending on the agreement, negotiations or cancellation may be possible, but a seller is not automatically required to fix every finding.

In a purchase, escrow generally describes a neutral third party holding funds and documents and carrying out agreed instructions. This differs from a mortgage escrow account used to pay items such as taxes and insurance. Ask your team which meaning applies to a document or payment.

The team works to satisfy remaining conditions, finalize documents and funds, and complete the transfer. Confirm your signing arrangements, final walkthrough, and possession timing. Verify payment instructions through a known, independently confirmed phone number before sending money; do not rely on an unexpected email.

You may see purchase agreements, disclosures, inspection reports, title information, escrow instructions, and loan documents. For many mortgages, the Loan Estimate and Closing Disclosure describe costs and terms. Compare them, ask about changes, and obtain explanations before signing anything you do not understand.

Save your signed records, confirm utilities and insurance arrangements, and make a maintenance plan. Locate shutoffs and review appliance instructions. Understand who services your mortgage and when payments begin. Keep a list of remaining move-in tasks and questions for the appropriate professional.