First-Time Homebuyer’s Guide Review (Parts 1-4)

Chapter 1: Reality Check and Research

The First-Time Homebuyer’s Guide is designed to help people navigate the process with confidence using a clearly defined, step-by-step approach. So far in our home-buying journey, we’ve covered the beginning research phase. The following summary will serve as a review of Chapter 1, consisting of Parts 1 through 4. Click any Part below to go to the full article.

Part 1: Introduction

Buying a house is a BIG deal, whether it’s your first home or fifth move. Although no two homebuyers or situations are the same, there is a general approach that you can take in order to make the process go as smoothly as possible. Five steps define the process: Research, Shop & Compare, Find a Home, Apply and Close.

Part 2: Decide why you want to buy a house

Before you decide to buy a new home, you’ll need to decide why you want to buy a new home. Taking human nature into account is essential when thinking about your first home purchase, so we’ve outlined a few good reasons and bad reasons for seeking home ownership. Bad reasons include wanting to buy a house because it sounds better than renting, and wanting to flip houses to generate a profit, a risky and difficult proposition. Good reasons include treating the home as a long-term investment, establishing regular monthly payments, enabling your creative freedom, and becoming part of a community.

Part 3: Review your finances

Now that you’ve established why you want to buy a new home, it’s time to decide if you can buy a new home. Only you know how responsible you’ve been with money, and whether you can afford the expenses and shoulder the obligations of owning a home. Factors involved in this decision are your credit score, savings habits, debt-to-income ratio, future expenses and spending habits.

Part 4: Know how much you can afford

Determining the living expenses you can afford per month will give you an idea of your home’s price range. It’s useful to think in terms of worst case scenarios to give you an idea of what you can handle financially if you suddenly get unlucky. Things to consider for creating a clear financial picture include writing out your monthly budget, accounting for extra homeownership expenses and being aware of Murphy’s Law – What can go wrong, will go wrong.

Chapter 2: Shop and Compare

In Chapter 2 of the First-Time Homebuyer’s Guide Review, we cover your loan options, methods for how to find a loan officer, and the Intuitive Loan Finder, an innovative online tool that allows you to find your perfect mortgage—FAST!


Your mortgage. Your way.

Get started on your Digital Mortgage!
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate, Inc. does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate, Inc. Guaranteed Rate, Inc. its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.