Purchase · 5 min read
What should first-time homebuyers know before they apply?
July 9, 2026 · Written by Bill Egan, NMLS 7342
Short answer
You still need credit, income, and enough cash after closing to fit a real loan program. Many states have down-payment help, but those programs have income limits, price caps, and a class you have to finish. Conventional 3 percent down, FHA 3.5 percent, and VA zero down are starting points, not a promise that you are approved.
01
Why this comes up
You do not know how much cash you actually need, whether “first-time” help is automatic, or if you are supposed to have 20 percent down. The process feels like a test you were never given the study guide for.
02
Where this goes wrong
Assistance is assumed, then income or purchase-price caps kill the grant after the offer is accepted. Or 3 percent down leaves no cash for taxes and prepaid interest, and you cannot close. Processing is ready. You are short at the table.
03
What we do about it
We size a real program to your credit, income, and cash after closing — conventional 3 percent, FHA 3.5 percent, VA zero down, or assistance if you fit the limits. We will tell you if the file is cleaner without the grant. A payment you can only make in January is not one we will talk you into.
04
How to get ready
Budget taxes, insurance, and HOA, not just the loan. Keep cash for the weeks after you get the keys. If a program requires a class, income limits, or a second lien, finish those before you shop. A pre-approval is the study guide. Apply when the documents are in a folder, not in a screenshot thread.