First Time Home Buyers FAQ

Looking for a new house can be daunting to the first-time home buyer: with so many different moving parts, the process can seem uninviting and complex. The good news about buying a home is, many others have done it before you–and they have learned from the bumps along the road!

In this article, we break down several key facets to buying a house that first-time home buyers should know before they get started. With help from Mortgage Service companies like MCS, buying a new home doesn’t have to be a mystery!

Before you get started browsing available listings, it’s important to have your budget in mind in addition to your current credit standing. It’s critical to know your credit score because this affects your ability to take on a loan to help with your new mortgage payment–so what’s a good credit score to buy a house?

As of 2022, a “good” credit score of at least 620 is required for most loans anticipated by first-time home buyers. A credit score of 620 is the minimum credit score required by most conventional mortgage loan lenders, though scores in the 500s are sometimes approved as well.

This question often poses a significant hurdle for folks looking to crunch the numbers on a brand new mortgage. While it’s possible to find conventional mortgages which require as little as a 3% down payment, it’s important to remember these are not guaranteed by the government.

There are several different kinds of loans that may work with your mortgage budget. These include VA Loans, USDA Loans, FHA Loans, and conventional loans. One benefit to taking out a loan like a VA Loan or a USDA Loan is that they typically require no down payment. Similarly, FHA Loans, or Federal Housing Administration Loans, offer down payments as low as 3.5%.

Studies show that most people who participate in housing assistance programs feel no regret for going through a lender–while only 11% say they wish they had waited for a bigger down payment! So, weigh your options with the available lending programs and plan for either a 15- or 30-year mortgage before taking the mortgage plunge–chances are, you’ll be happy that you did.