Homebuyer Guide

Homebuying Guides
Written By Alaya Harrell

INTRODUCTION

Buying a home is one of the most meaningful and rewarding decisions you’ll ever make — but it can also feel overwhelming if you’re not sure where to start. Whether you’re a first-time buyer or returning to the market after several years, having a clear understanding of the homebuying process makes everything smoother, less stressful, and far more enjoyable.

This Homebuyer Guide is designed to walk you through each step with confidence. From evaluating your finances and understanding credit, to choosing the right mortgage, working with a real estate professional, touring homes, making an offer, completing inspections, and closing — you’ll find everything you need to feel prepared and informed.

No guesswork. No confusion. Just a simple, complete roadmap to help you navigate the homebuying journey successfully and move into a home you love, whether it’s in Washington, Oregon, or one of Gallardo Homes’ growing communities.

 

STEP 1: ASSESS YOUR FINANCIAL READINESS

Buying a home begins long before you tour a model or contact a builder. It starts with understanding your finances and determining whether you're ready—not just to qualify for a mortgage, but to comfortably manage one.

Review Your Credit Health

Your credit score plays a major role in the type of loan you qualify for, your interest rate, and your long-term payment amount.

  • Higher credit scores often result in lower interest rates.

  • Conventional loans typically prefer 620+, while government-backed loans can allow for lower scores.

  • Oftentimes Lenders will accept lower scores, and we recommend speaking with a Loan Officer to learn more about the scores they accept.

  • A score of 760+ can unlock some of the most favorable loan terms.

If your score needs improvement, start early by lowering credit balances, paying bills on time, avoiding new credit accounts, and reviewing your credit report for errors.

Understand Your Debt-to-Income Ratio (DTI)

Your DTI tells lenders how much of your income goes toward debt each month. It's a key measure of your ability to take on a mortgage.

  • Ideally, your housing expenses (mortgage, taxes, insurance) should be around 28% of your gross monthly income.

  • Total monthly debts, including housing, should generally stay at or below 36–43%, depending on the loan type.

A lower DTI gives you more flexibility, buying power, and the chance to secure a better interest rate.

Plan for Your Down Payment

Your down payment affects your monthly mortgage payment and loan options.

Choose a down payment amount that balances affordability with long-term comfort.

Prepare for Closing Costs, Savings & Moving Expenses

Many buyers forget additional costs:

  • Closing costs usually total 2–5% of the purchase price.

  • Earnest money (typically 1%) shows your commitment.

  • Savings should cover moving costs, utilities setup, furniture, and future repairs.

Being financially prepared ensures a smoother approval process and a more comfortable transition into homeownership.

 

STEP 2: CHOOSE THE RIGHT MORTGAGE

Once you understand your finances, it’s time to explore the mortgage options available. There are several types of loans, each with its own requirements and benefits.

Conventional Loans

The most common loan type, ideal for buyers with strong credit and stable income. These loans are not backed by the government and often provide competitive interest rates.

FHA Loans

Designed for buyers with lower credit scores or smaller down payments. FHA loans offer more flexible requirements but include mortgage insurance.

VA Loans

Exclusive to eligible veterans, active-duty service members, and surviving spouses. VA loans typically require no down payment and offer excellent mortgage terms.

USDA Loans

Available to buyers purchasing in eligible rural areas. USDA loans often require zero down and offer below-average mortgage rates.

 

STEP 3: COMPARE LENDERS AND GET RATE QUOTES

Not all lenders offer the same rates, terms, or fees. Before choosing one, compare quotes from at least three mortgage lenders. Differences in interest rate—even a fraction of a percent—can save or cost thousands over the life of your loan.

During this step:

  • Ask for Loan Estimates to compare fees and rates.

  • Review the APR, which reflects true borrowing costs.

  • Ask lenders about rate locks, timelines, and closing cost options.

  • And always ask how long they have been in the business, are they a full-time or part-time lender, and what happens after closing.

 

STEP 4: GET PRE-APPROVED FOR YOUR MORTGAGE

A pre-approval is one of the most important steps in the homebuying process. It shows the builder and your agent that you are a qualified buyer and establishes the price range you should shop within.

To get pre-approved, be ready to submit:

  • Bank statements

  • Recent pay stubs

  • Federal tax returns

  • Employer information

  • Investment or retirement account statements

  • Self-employment records (if applicable)

  • Hard credit report

A pre-approval letter strengthens your position when writing an offer and helps you move through the process more efficiently.

For Gallardo Homes communities, we recommend The Fornerette Team, who are knowledgeable, responsive, and experienced with new-construction home loans.

 

STEP 5: FIND A REAL ESTATE AGENT

While some new construction purchases allow you to work directly with the builder, having a trusted real estate agent ensures you have a professional advocating for your interests.

A great buyer’s agent will:

  • Help you understand market value and pricing

  • Explain contracts and timelines

  • Guide you through contingencies

  • Support negotiations

  • Provide local insights on schools, neighborhoods, and amenities

  • Protect your best interests during construction and closing

For Gallardo Homes communities, we recommend The Maxey Home Team, who are knowledgeable, responsive, and experienced with new-construction purchases.

 

STEP 6: SHOP FOR YOUR HOME

Now the fun begins—touring model homes, comparing floor plans, and exploring communities.

When shopping:

  • Consider location, school districts, and neighborhood features

  • Look at floor plan layout, room sizes, and natural light

  • Pay attention to construction quality and included features

  • Visit at different times of day to assess traffic and noise

  • Think ahead—will this home serve your lifestyle in 3–10 years?

Your agent will schedule tours, provide insights, and help narrow your options.

 

STEP 7: MAKE AN OFFER

When you've found “The One,” it is time to make an offer. Your agent will review comparable sales (comps) to help determine a fair and competitive price.

Your offer typically includes:

  • Purchase price

  • Earnest money amount

  • Offer expiration time

  • Contingencies (inspection, appraisal, financing)

  • Requested closing date

The seller can accept, reject, or counter your offer. Your agent will guide negotiations and help you avoid overpaying.

 

STEP 8: APPLY FOR YOUR MORTGAGE

Once your offer is accepted, you will formally apply for your mortgage. This is when your lender verifies your information, reviews documents, assesses risk, and prepares your loan for underwriting.

You'll receive a Loan Estimate, which outlines your rate, monthly payment, and closing costs.

 

STEP 9: SCHEDULE A HOME INSPECTION

Even with new construction, a home inspection is a smart decision. It helps identify potential issues before closing.

A home inspector evaluates:

  • Foundation

  • Roof

  • Plumbing

  • Electrical systems

  • HVAC

  • Attic, insulation, and ventilation

If problems arise, you may ask the builder to correct them or negotiate solutions depending on your contract and contingency terms.

 

STEP 10: FINALIZE DETAILS, PREPARE FOR MOVE-IN & CLOSE

With your loan nearing final approval, several important steps occur:

Secure Homeowners Insurance

Lenders require the home to be insured before closing. Shop rates and ensure you have enough coverage to fully rebuild the home if needed. Ask your lender if they have a preferred parter, they work with for homeowners’ insurance.

Plan Your Move

Coordinate movers, utility transfers, cable/internet setup, and mail forwarding.

Final Walkthrough

A day or two before closing, you’ll walk through the home to ensure:

  • Repairs are complete

  • The home is clean and move-in ready

  • Appliances and systems function properly

  • Nothing has changed since your last visit

Closing Day

Closing is where you sign all final documents, complete the loan, and receive your keys. Once closing is recorded, the home is officially yours.

 
Alaya Harrell
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First-Time Homebuyer Guide
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How to Get Pre-Approved