First-Time Homebuyer's Complete Guide to Getting a Mortgage in 2026
Buying your first home is the biggest financial decision of your life. Here's the complete step-by-step process from credit check to closing day.
Financial Writer
Step 1: Check Your Credit Score
You need at least a 620 FICO score for most conventional loans. FHA loans accept 580+ with 3.5% down. Check your score free at AnnualCreditReport.com and dispute any errors before applying.
Step 2: Get Pre-Approved
A pre-approval letter shows sellers you're serious and establishes your budget. Apply with 2–3 lenders to compare rates — multiple mortgage inquiries within 45 days count as one for credit scoring purposes.
Step 3: Calculate True Affordability
Your monthly payment (PITI: principal, interest, taxes, insurance) should be no more than 28% of your gross monthly income. Don't forget PMI (if down payment < 20%), HOA fees, and maintenance costs.
Step 4: Choose the Right Loan
30-year fixed: lowest payment, highest total interest. 15-year fixed: pays off faster, significantly lower total interest. ARM: lower initial rate but adjustable after 5–7 years — only worth it if you plan to sell within the fixed period.
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