First-Time Home Buyer’s Guide

Start with your numbers, before you shop

Get pre-approved first. A pre-approval (not just a pre-qualification) means a lender has actually reviewed your income, credit, and assets, it tells you your true investment level and makes your offers credible to sellers.

• Credit: higher scores unlock better terms. Many loans start around a 620 score; FHA can go lower. Pull your credit early and dispute errors.
• Down payment: conventional loans can start near 3 to 5% down, FHA around 3.5%, and VA/USDA can be 0% for those who qualify.
• Closing costs: typically about 2 to 5% of the purchase price (lender fees, title, prepaids, and escrows).
• Reserves: lenders like to see a cushion of savings left after closing.

The buying process, step by step

1. 1Get pre-approvedWith a reputable local lender.
2. 2Hire a buyer’s agentIn most transactions the seller or builder contributes to the fee, so representation typically costs you nothing extra, and the terms are in the agreement you sign.
3. 3Tour homesAnd separate your must-haves from your nice-to-haves.
4. 4Make an offerWith the right price, contingencies, and earnest-money deposit.
5. 5Under contractComplete your home inspection, appraisal, and loan underwriting.
6. 6Final walkthrough, then closingSign, fund, and get your keys.

Florida costs every buyer should know

• Homestead exemption: your primary residence can qualify for up to $50,000 off assessed value, plus the “Save Our Homes” 3% annual cap on assessment increases, meaningful long-term savings. File with the county.
• Property taxes reset to your purchase price, never rely on the seller’s current tax amount.
• Insurance is a real line item here: homeowners, and often flood and windstorm coverage. Get quotes early; older roofs can be hard or costly to insure. A wind-mitigation inspection can lower premiums.
• HOA and CDD fees are common in Southwest Florida, plan for both (see my CDD fees explainer on the blog).

First-time buyer assistance

Florida offers programs that can help with down payment and closing costs, eligibility and funding change, so confirm with your lender.

• Florida Housing programs (including down-payment assistance and the Hometown Heroes program for eligible workers) can put money toward your purchase.
• FHA loans, lower down payment and more flexible credit, are popular with first-timers.
• Ask your lender specifically which programs you qualify for.

Common first-timer mistakes to avoid

• Shopping before you’re pre-approved.
• Maxing your investment range and forgetting taxes, insurance, HOA, and CDD.
• Skipping the inspection to “win” a deal, protect yourself instead.
• Opening new credit or making big purchases during underwriting.
• Using the builder’s or listing agent instead of your own representation.