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Homebuyer Guide · PDF Download

First-Time Homebuyer
Prep Guide

LIVE RATE 6.99% APR for qualified borrowers · No hard credit pull
Check Rate — No Hard Pull
Last Updated: May 2026

A 12-month mortgage readiness plan covering lender qualification benchmarks by loan type, DTI targets, down payment strategy, rate shopping without hurting your score, and down payment assistance programs most buyers don't know about.

Updated April 2026
20-page PDF
$17 $37
One-time purchase · Instant PDF download
  • 12-Month Mortgage Readiness Checklist
  • Loan Type Comparison (FHA, Conv., VA, USDA)
  • Credit Score Benchmarks by Loan Type
  • DTI Calculator + Target Ratios
  • Down Payment Strategy Guide
  • Rate Shopping Without Hurting Your Score
  • Down Payment Assistance Programs Guide
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What to Do Each Month Before You Buy

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Months 1–3: Financial Audit

Pull all three credit reports. Calculate your DTI. Identify the loan type you qualify for. Set your target score and timeline.

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Months 4–6: Credit Optimization

Dispute errors. Lower utilization. Avoid new credit applications. The guide explains exactly which actions to take — and which to avoid — in the 6 months before applying.

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Months 7–9: Down Payment Strategy

Calculate your target down payment by loan type. Research DPA programs in your state. Set up a dedicated savings account with the right structure for gift fund documentation.

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Months 10–12: Lender Shopping

How to get multiple rate quotes without multiple hard inquiries. What to compare beyond the interest rate. How to read a Loan Estimate. What to negotiate before closing.

Which Loan Type Is Right for You?

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FHA Loan — Best for scores 580–679

3.5% down with a 580+ score. 10% down with a 500–579 score. Higher mortgage insurance costs than conventional — the guide shows you the break-even point where conventional becomes cheaper.

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Conventional — Best for scores 680+

As low as 3% down with a 620+ score. PMI drops off at 20% equity. Best total cost for buyers with strong credit — but stricter DTI requirements than FHA.

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VA Loan — Best for eligible veterans

0% down, no PMI, competitive rates. The guide covers VA funding fee structure, eligibility requirements, and how to use your benefit if you've used it before.

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Our editorial team consists of financial writers, CFPs, and former banking professionals dedicated to providing accurate, unbiased financial guidance. All content is fact-checked and updated regularly. Learn about our editorial standards →

Frequently Asked Questions

It depends on the loan type. FHA loans accept scores as low as 580 (3.5% down) or 500 (10% down). Conventional loans typically require 620+, but the best rates go to 740+. The guide includes a full table of score benchmarks by loan type.
As little as 0% (VA/USDA), 3% (conventional), or 3.5% (FHA). But down payment size affects your monthly payment, PMI, and total interest paid. The guide walks through the math for each scenario.
Debt-to-Income ratio is your total monthly debt payments divided by your gross monthly income. Most lenders want a back-end DTI below 43% for conventional loans and 50% for FHA. The guide includes a calculator and target ratios by loan type.
Yes. 30-day full refund, no questions asked.

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