First-Time Home Buyer Guide: Answers to the Most Asked Questions in Real Estate

First-Time Home Buyer Guide: Your Most Asked Questions Answered

Buying your first home is exciting—but it can also feel confusing if you don’t know where to start. As a Texas REALTOR®, I see the same questions asked daily on social media. This guide breaks them down in a simple, stress-free way.

How Much Money Do First-Time Home Buyers Need?

Many buyers believe they need 20% down, but that’s a common myth.

Down payments can be as low as 3–5%
First-time home buyer programs may offer down payment assistance
Some sellers may contribute toward closing costs

💡 Tip: Your required cash depends on your loan type, credit score, and purchase price.

What Credit Score Do You Need to Buy a Home?

Most first-time buyers qualify with:

Credit scores starting around 620
FHA and other programs may allow lower scores
Lenders can provide strategies to boost your score quickly

Don’t self-disqualify—get pre-approved and know your real options.

Why Is Pre-Approval Important?

A mortgage pre-approval:

Confirms your buying power
Strengthens your offer
Prevents budget surprises
Makes your search faster and more focused

Pre-approval should always come before house hunting.

What Are Closing Costs?

Closing costs typically range from 2–4% of the home price and include:

Lender fees
Title and escrow
Appraisal and inspections
Taxes and insurance

The right REALTOR® can help you plan for—or reduce—these costs.

Is It Better to Rent or Buy?

Renting offers flexibility, but buying builds equity and long-term wealth. If you plan to stay in one place for a few years, buying may be the smarter financial move.

What Does a REALTOR® Do for First-Time Buyers?

A REALTOR® helps you:

Understand the home buying process step-by-step
Avoid costly mistakes
Negotiate price and repairs
Navigate inspections and contracts
Feel confident throughout the transaction

In most cases, buyers do not directly pay REALTOR® fees.

Final Thoughts

You don’t need perfect credit or a huge savings account to buy your first home. You just need the right information and guidance.

If you’re thinking about buying your first home in Texas, let’s talk.