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
June 30, 2026FHA loans offer low down payment options and more forgiving credit requirements for borrowers who may not qualify for a conventional mortgage or need to save more money out of pocket at the front end of the mortgage. But even with more forgiving credit requirements, some borrowers are tempted to omit certain debt information from their home loan applications. What does it mean to conceal a debt or financial situation from your loan officer?
June 30, 2026Some borrowers start working on their credit scores but get impatient with the process because they can't predict when their efforts will change their FICO scores. How long does it take for your FICO scores to update when you pay off a loan, reduce your credit card balances, or take other steps to make yourself a better credit risk? The short answer is that credit reporting procedures are not standardized, and it may take more time than you realize to get those positive credit actions added to your credit report.
June 29, 2026Mortgage interest rates are "moving targets" shaped by national economic trends and the borrower's specific financial profile. What is your FHA loan interest rate? Much depends on the financial data you bring to the table. Lenders set interest rates daily based on a snapshot of market conditions, but the rate ultimately offered also reflects risk, equity, and the lending institution's internal operational costs.
June 28, 2026An FHA appraisal differs from a conventional appraisal. While the goal of a conventional appraisal centers on market value, the FHA appraisal also focuses on the buyer's safety and soundness. FHA lenders select the appraiser, not the home buyer.
June 24, 2026FHA loan closing costs vary by property price and geographic location, rather than by a single nationwide flat fee. Total settlement charges combine percentage-based fees, local government taxes, and marketplace service costs. If you are new to buying a home, you'll want to get familiar with the closing cost issues discussed here to avoid budgetary surprises later on.
