Buying and Owning Your First Home
May 11, 2026
What should a first-time home buyer do before looking at houses?
Before you start looking at properties, you need to check your current income, set a clear budget, and figure out your long-term goals. Listing your current debts and determining an affordable monthly housing budget are the very first steps to take.
What financial records do lenders look at to see if you qualify for a loan?
Lenders check your income records, job history, current debts, and credit scores. Your financial choices and habits over the last two years matter the most during this review.
Why should you check your credit reports before applying for a mortgage?
Checking your credit reports early gives you time to spot and fix mistakes or hidden surprises. This prep time also helps you plan exactly how much you need to save for the down payment and closing costs.
What additional monthly costs do you need to include in your budget besides the loan principal and interest?
An accurate housing budget must include property taxes, homeowners' insurance, utility bills, and any homeowners' association (HOA) fees. These are the "before you move" costs associated with the mortgage. Home ownership costs should also be anticipated.
What day-to-day costs should you expect after closing on the house?
Buying the house is just the start. You need to budget for regular upkeep, such as lawn care, home improvements, and eventually replacing broken appliances. Roof repair or replacement issues are also important to consider. Do you anticipate paying homeowner association fees in addition to mortgage insurance and other costs? Think carefully about your post-closing day budget.
Moving into a new home brings new financial responsibilities on top of the debts you already have. Just like you saved up for a down payment, you need to start saving right away for unexpected house-related costs and scheduled maintenance expenses alike.
How do your financial goals change the type of loan you choose?
The choice comes down to your main goal: do you want to save as much money as possible upfront, or pay less total interest over the life of the loan?
Fixed-rate loans keep the exact same monthly principal and interest payments for the entire life of the loan. Adjustable-rate mortgages usually start with a lower introductory rate, but payments can jump once the initial period ends.
FHA Loan Articles
August 19, 2026Homebuyers who have enough cash for a down payment still need to consider their full financial picture before choosing between a conventional mortgage and an FHA loan. Having cash on hand changes the math for both options, but savings alone won't make a conventional loan the automatic winner. Credit scores, current debt, and the type of property you want to buy all determine which loan will cost less over time.
August 11, 2026Homeowners with FHA adjustable-rate loans need to track their loans more closely. That is because FHA ARM loans start with introductory interest rates that eventually expire and are subject to change afterwards based on market rates. When interest rates rise, monthly housing payments climb on ARM loans, pushing many homeowners to consider refinancing into a fixed-rate mortgage.
August 10, 2026If you want to buy a home with an FHA mortgage, you must set up an escrow account to cover property taxes, homeowner insurance, and upfront closing expenses. While the FHA loan program has rules for funding these accounts, buyers often do not realize those rules can include approved and unallowed sources for escrow funds. What do you need to know before you set up and fund your escrow account for an FHA mortgage?
August 3, 2026Buying a home in a high-cost area requires understanding how FHA loan limits shape your financing options. Does the house for sale have a price above the local FHA loan limit? You may need to explore your jumbo loan options. There are conventional jumbo loans and FHA versions. Which is right for you? Much depends on your financial needs, plans, and goals for the loan.
July 30, 2026There is a common misconception about FHA loans that only a first-time home buyer can use the program. This is not true; repeat buyers can qualify for an FHA loan, but why does this misconception exist? Partially because state and local programs have first-time buyer requirements for down payment and/or closing cost assistance programs. So while you do not need to be a first-time buyer to get an FHA loan, you may need to meet that definition to qualify for down payment help.
