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Buying my first home

Can I actually afford this, and what happens next?

Step 1 of 7

Am I ready? Money, credit, and what it really costs

The answer

Ready means three things: you know what monthly payment you'd be comfortable with, your credit is in a place lenders like, and you have cash for the down payment and the closing costs most people forget. You do not need 20% down. The typical first-time buyer puts down about 10%, and 3–3.5% is possible with the right loan. Closing costs run another 2–5% of the price on top.

Digging into these numbers can feel uncomfortable. It's the single most useful thing you can do, and it's normal to find a surprise or two. That's the point of looking now instead of later.

How long
Most people spend about 2 weeks here.

In Georgia

Georgia Dream, run by the Georgia Department of Community Affairs, offers affordable financing and down payment assistance to qualifying first-time buyers. Income and purchase-price limits apply, so ask a participating lender early.

What to do0 of 5 done
  • How to: Checked my credit reports and fixed any errors

    Pull your credit report from all three bureaus and dispute any errors

  • How to: Know how much cash I can put toward down payment and closing

    Add up the cash you could put toward a down payment and closing costs

  • How to: Calculated my debt-to-income ratio

    Calculate your debt-to-income ratio (monthly debt payments ÷ gross monthly income)

  • How to: Chose a comfortable monthly payment

    Decide the monthly payment you'd be comfortable with, not the maximum

  • How to: Collected pay stubs, tax returns and bank statements

    Gather pay stubs, tax returns and bank statements so you're ready for a lender

Go deeper
What people wish they'd known
  • Half of first-time buyers say they felt financially over their heads after buying. Decide your comfortable payment before you see a single house.
  • Assuming you need 20% down. Many programs allow 3–5%, and waiting to save 20% can cost more in rising prices than it saves.
  • Applying for new credit during this stretch. Lenders check again before closing, and a new card or car loan can change your approval.

From the Thrive team

  • If you have collection accounts or late payments, ask the creditor about a pay-for-delete agreement. It's worth asking.
  • Georgia's Georgia Dream program can help qualifying first-time buyers with the down payment. Ask a lender who works with it.
The next thing people ask

How much can I borrow, and what is pre-approval?

Go to step 2

Questions you'll probably have

Questions about your situation?

Elliott or Ashley will answer, usually within one business day. No pressure, no pitch.

Who would you like to ask?

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