First-Time Homebuyer Guide

Homebuying Guides
Written By Alaya Harrell

INTRODUCTION

Becoming a homeowner for the first time is a milestone that brings both excitement and countless questions. Whether you're dreaming of your first home in Washington, Oregon, or exploring new construction communities like those built by Gallardo Homes, the process can feel complex — especially when it's all brand new.

This guide breaks everything into clear, simple steps to help you feel informed and confident. From building your credit to working with an agent, touring homes, understanding earnest money, inspections, and finally getting the keys — this is your complete roadmap to first-time homeownership.

 

Understand What You Can Afford

The first step for any first-time buyer is understanding your financial picture. Before you begin browsing listings, sit down and determine how much you can comfortably spend on your monthly mortgage, taxes, insurance, and utilities.

Consider:

  • Your monthly take-home income

  • Your existing debts (car loans, student loans, credit cards)

  • How much you can reasonably save each month

  • Your long-term goals and cost of living

A budget helps you shop with confidence and prevents you from falling in love with homes that stretch you too far financially.

 

Check and Strengthen Your Credit

Your credit score significantly affects your interest rate and loan options. A higher score typically earns you a lower mortgage rate — saving you money each month and thousands over the life of your loan.

For first-time buyers:

  • Aim for a score of 620+ for conventional loans

  • Scores of 580+ may qualify for FHA loans

  • Higher scores (740+) unlock the best rates

If your credit needs improvement, start now by lowering credit card balances, paying bills on time, and avoiding new loans.

 

Start Saving Early — You Need More Than Just a Down Payment

First-time buyers often underestimate the total costs of buying a home. You’ll want savings for:

Down Payment

  • 20% down eliminates mortgage insurance

  • 3–5% down may be enough with conventional loans

  • FHA loans allow as little as 3.5%

  • VA and USDA loans allow 0% down if you qualify

Closing Costs

Usually 2–5% of the purchase price.

Earnest Money Deposit

Typically, 1% of the price, paid when your offer is accepted.

Moving and New-Home Expenses

Furniture, appliances, paint, deposits, cleaning, landscaping, etc.

Creating separate savings categories can make the process feel more manageable.

 

Explore First-Time Homebuyer Programs

Both Washington and Oregon offer helpful programs for first-time buyers, including:

  • Down payment assistance

  • Low-interest loan programs

  • Grant programs

  • Reduced mortgage insurance

  • Tax credit programs

Your lender or agent can help you determine which programs you qualify for — and how much they may lower your upfront costs.

 

Get Pre-Approved Before You Start Touring Homes

Pre-approval is essential for first-time buyers. It tells you how much you can borrow, what your interest rate might look like, and shows sellers you’re a serious, qualified buyer.

To get pre-approved, you’ll need:

  • Income documentation (pay stubs, W-2s, tax returns)

  • Bank statements

  • Employment verification

  • Credit review

  • Asset statements

This step helps you shop confidently within your true price range.

 

Choose the Right Real Estate Agent

First-time buyers especially benefit from a strong agent. They guide you through the process, explain contracts, spot issues, and help you avoid mistakes.

Your agent will:

  • Identify homes that fit your goals

  • Understand local neighborhoods

  • Explain contingencies and timelines

  • Recommend inspectors and lenders

  • Negotiate on your behalf

  • Protect your financial interests

Gallardo Homes recommends The Maxey Home Team, known for their clarity, support, and new-construction expertise.

 

Start Touring Homes with Your Must-Haves in Mind

Once pre-approved and partnered with an agent, you can begin exploring homes. Make a list of non-negotiables and “nice to haves.”

Common first-time buyer considerations:

  • Location and commute

  • Number of bedrooms/bathrooms

  • Yard space

  • Storage

  • Layout and natural light

  • Future growth potential

Don’t rush. Touring multiple homes helps you understand your priorities and the market.

 

Understand the Difference Between Resale and New Construction

First-time buyers may not realize how different these two options can be.

New Construction Pros:

  • Brand-new, low-maintenance home

  • Modern layouts and finishes

  • Builder warranties

  • High energy efficiency

  • Option to personalize with upgrades

Resale Pros:

  • Established neighborhoods

  • Mature landscaping

  • Often lower base price

  • More immediate availability

Both can be excellent choices — it comes down to your lifestyle, timing, and preferences.

 

Make a Strong, Confident Offer

Your agent will help you write a competitive offer based on recent sales (“comps”). The offer will include:

  • Purchase price

  • Earnest money amount

  • Contingencies

  • Closing date

  • Seller concessions (if applicable)

It’s normal to feel nervous — especially as a first-time buyer — but your agent will guide every step.

 

Schedule Your Inspection and Appraisal

Even if you’re buying new construction, inspections are an important safeguard.

Inspection Evaluates:

  • Roof

  • Foundation

  • Plumbing

  • Electrical

  • HVAC

  • Ventilation, insulation, and more

Appraisal Evaluates:

  • The home’s fair market value

  • Whether it matches the price you offered

Your lender requires the appraisal, and your inspection protects your peace of mind.

 

Finalize Your Loan and Prepare for Closing

During underwriting, your lender verifies everything from income to assets to credit. Avoid major financial changes during this stage, including:

  • Opening new credit cards

  • Financing furniture

  • Depositing large unexplained sums

  • Changing jobs

Once your lender issues the “clear to close,” you’ll receive your Closing Disclosure and schedule your signing appointment.

 

Do Your Final Walkthrough

This is your chance to confirm:

  • The home is move-in ready

  • Repairs (if negotiated) are completed

  • Systems and appliances are functioning properly

  • Nothing has changed since your last visit

Take your time — this is the home you’re about to purchase.

 

Closing Day — You’re Officially a Homeowner

On closing day, you’ll sign the mortgage documents, finalize your loan, receive your keys, and officially become a homeowner. Congratulations — your first home is now yours.

 

After You Move In: Protect Your Investment

First-time buyers should immediately:

  • Set up homeowners insurance

  • Change locks (if resale)

  • Set reminders for maintenance tasks

  • Build a home repair/emergency fund

  • Keep all receipts, warranties, and owner’s manuals

Homeownership is a long-term responsibility — but with the right habits, it’s also incredibly rewarding.

 

CONCLUSION

Buying your first home is a major achievement, and with the right guidance, it doesn’t have to be overwhelming. By preparing financially, choosing the right professionals, understanding the process, and moving step-by-step, you can confidently navigate the journey to homeownership in Washington, Oregon, or any Gallardo Homes community.

 
Alaya Harrell
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Homebuyer Guide