Your First Home Starts Here
We make the mortgage process simple, transparent, and stress-free — especially for first-time buyers.
Education First
We walk you through every step so you always know what's happening and why.
Loan Options Compared
We shop multiple programs and present side-by-side comparisons — no pressure, just clarity.
Fast Pre-Approvals
Get a pre-approval letter in as little as one business day so you can move quickly on the right home.
Always Reachable
Real-time loan status updates and a direct line to your loan officer — not a call center.
Check Your Credit & Budget
Pull your free credit report and review your score. Lenders typically look for a minimum of 580–620 depending on the loan type. Calculate your monthly budget — a common rule of thumb is keeping housing costs under 28% of gross income.
Get Pre-Approved
A pre-approval letter shows sellers you're serious and gives you a clear price range. You'll provide income, asset, and employment documents. The process usually takes 1–3 business days.
Find a Real Estate Agent & Shop
Work with a buyer's agent (their commission is typically paid by the seller). Tour homes within your pre-approved budget and keep a checklist of must-haves vs. nice-to-haves.
Make an Offer
Your agent will help you craft a competitive offer. Once accepted, you'll enter the inspection and appraisal period — this is your chance to negotiate repairs or credits before proceeding.
Loan Processing & Underwriting
Your lender gathers all documentation and an underwriter verifies everything. Stay responsive — quick replies to document requests keep your closing on schedule.
Closing Day
You'll sign final documents, pay closing costs and your down payment, and receive the keys. Typical closing costs run 2–5% of the purchase price, so plan for this in addition to your down payment.
FHA Loan
Best for: Low credit scores or limited savings
Requires mortgage insurance premium (MIP) for the life of the loan in most cases.
Conventional
Best for: Stronger credit profiles
PMI is required below 20% down but can be removed once you reach 20% equity.
USDA Loan
Best for: Rural & suburban areas
Income limits apply. Property must be in an eligible rural area — more areas qualify than you might think.
Down Payment Assistance
Best for: First-time buyers needing help with upfront costs
State and local programs can provide grants or low-interest second mortgages to cover part of your down payment.
* Minimum requirements vary by lender and market conditions. Contact us for a personalized assessment.
How much do I need for a down payment?
Depending on the loan type, as little as 0–3.5%. Down payment assistance programs can reduce this further. A larger down payment lowers your monthly payment and removes mortgage insurance sooner on conventional loans.
What's the difference between pre-qualification and pre-approval?
Pre-qualification is a quick estimate based on self-reported information. Pre-approval involves a full credit pull and document review — it carries significantly more weight with sellers and is what you need before making offers.
How long does the home-buying process take?
From accepted offer to closing typically takes 30–45 days. Getting pre-approved before you start shopping can shorten this and give you a competitive edge in a fast-moving market.
Will applying for a mortgage hurt my credit score?
A mortgage application triggers a hard inquiry, which may temporarily lower your score by a few points. Multiple mortgage inquiries within a 14–45 day window are typically counted as a single inquiry by scoring models.
What closing costs should I expect?
Typically 2–5% of the loan amount. These include lender fees, title insurance, appraisal, prepaid interest, and escrow setup. You'll receive a Loan Estimate early in the process that breaks everything down.
Can I buy a home with student loan debt?
Yes. Lenders look at your debt-to-income (DTI) ratio rather than the absolute amount of debt. Many first-time buyers successfully purchase with student loans — the key is keeping total monthly debt payments manageable relative to your income.
Use this checklist to stay organized from start to closing day.
Before You Start
- Pull your free credit report from annualcreditreport.com
- Review your credit score and dispute any errors
- Calculate your monthly budget (aim for housing costs under 28% of gross income)
- Estimate how much you can save for a down payment and closing costs
- Pay down high-interest debt to improve your debt-to-income ratio
- Avoid opening new lines of credit or making large purchases
Gathering Documents
- Last 2 years of W-2s or 1099s
- Last 2 years of federal tax returns
- Last 30 days of pay stubs
- Last 2–3 months of bank statements (all accounts)
- Government-issued photo ID
- Proof of any additional income (rental, alimony, etc.)
- Gift letter (if receiving down payment funds from family)
Getting Pre-Approved
- Contact a lender and submit your pre-approval application
- Authorize a credit pull
- Receive and review your Loan Estimate
- Understand your price range and monthly payment
- Get your pre-approval letter in writing
House Hunting
- Interview and select a buyer's real estate agent
- Define your must-haves vs. nice-to-haves
- Research neighborhoods — schools, commute, amenities
- Attend showings and take notes on each property
- Check HOA fees and rules for any properties of interest
Under Contract
- Submit your earnest money deposit
- Schedule a professional home inspection
- Review the inspection report and negotiate repairs if needed
- Order the appraisal (your lender will arrange this)
- Review seller disclosures carefully
- Secure homeowners insurance and provide proof to lender
Closing Preparation
- Review your Closing Disclosure at least 3 days before closing
- Confirm final closing costs and wire transfer instructions
- Complete your final walkthrough of the property
- Bring a valid photo ID to closing
- Wire funds or bring a cashier's check for closing costs and down payment
- Sign all closing documents — congratulations, you're a homeowner!
Book a Free Consultation
No obligation, no pressure. We'll review your goals, walk through loan options, and answer every question you have — in 30 minutes or less.
Schedule via Google CalendarPrefer to call or text? (248) 630-2057 · Addison@costonmortgage.com