First-Time Homebuyer’s Guide

Buying your first home is one of life’s biggest milestones—but it can also feel like one of the most intimidating. At Community West Credit Union, we believe knowledge is power (and peace of mind), especially when it comes to navigating the homebuying process.

Whether you’re just daydreaming about a cozy place of your own or already scrolling through listings, this guide is your go-to roadmap for buying your first home—without the stress.

Step 1: Understand What Homeownership Really Means

Before you start browsing homes or booking showings, take a step back and think about what homeownership means for you.

Ask yourself:

• What are my long-term goals? (e.g., building equity, putting down roots, investing)

• Am I financially ready for the responsibilities of owning a home?

• What kind of lifestyle do I want—urban condo, quiet neighborhood, something with room to grow?

Homeownership is more than just a financial decision—it’s a lifestyle shift. Taking time to reflect helps you move forward with intention.

Step 2: Get Your Finances in Order

Buying a home is likely the biggest purchase you’ll ever make. Here’s how to prepare your finances:

Start with a Budget
Make a list of your monthly income and expenses. Be honest and include things like dining out, streaming subscriptions, pet care, and future home maintenance costs.

Save for Key Expenses:

• Down Payment: Most lenders require at least 3–5% down, but 20% helps you avoid private mortgage insurance (PMI).

• Closing Costs: These range from 2–5% of your loan amount and include fees for the lender, title company, appraisal, and more.

• Emergency Fund: It’s smart to keep a cushion (3–6 months of expenses) aside even after your purchase.

Build or Strengthen Your Credit
Your credit score affects your interest rate and loan options.

• Pay bills on time

• Avoid new debts before applying

• Check your report for errors (you’re entitled to a free copy each year at AnnualCreditReport.com)

Step 3: Get Pre-Approved for a Mortgage
This step is key—it tells you how much you can afford and shows sellers you’re serious.

At Community West, we make pre-approval simple:

• Chat with a real, local mortgage expert

• Compare rates and programs

• Learn what your monthly payment might look like, including taxes and insurance

Pro-Tip: Don’t confuse “pre-qualification” with “pre-approval.” Pre-approval is based on verified information and carries more weight with sellers.

Step 4: Start House Hunting
Now the fun begins! With a pre-approval letter in hand, it’s time to start the search. Here’s how to stay focused:

Create a “Must-Have” vs. “Nice-to-Have” List

• Musts: number of bedrooms, location, yard, school district, etc.

• Nice-to-haves: fireplace, finished basement, walk-in closets, etc.

Work with a Real Estate Agent
A good agent will:

• Help you understand the local market

• Guide you through the negotiation process

• Keep your best interests in mind

Pro-Tip: In need of a referral? We partner with local agents we trust—just ask!

Step 5: Make an Offer
Once you find the right home, your agent will help you submit an offer that reflects:

• Market conditions

• Comparable homes

• Seller motivations

• Your pre-approval amount

The seller may accept, reject, or counter your offer. Negotiation is normal—stay patient and flexible.

Step 6: Schedule the Inspection and Appraisal
Even if the house looks perfect, inspections help uncover any issues before you’re committed.

Inspection

• Covers structure, roof, plumbing, electrical, and more

• Gives you leverage to renegotiate or request repairs

Appraisal

• Required by your lender to ensure the home is worth the purchase price

If the home appraises low, you may need to renegotiate with the seller or bring extra cash to closing.

Step 7: Finalize Your Mortgage

During this stage, your lender will:

• Verify your income, employment, and debts again

• Send you a Closing Disclosure (a breakdown of all costs)

• Schedule your closing day

Avoid any big financial changes now (like quitting your job or buying a car)—they can delay or derail your mortgage.

Step 8: Closing Day!
On closing day, you’ll:

• Sign lots of documents (we’ll help explain them all)

• Pay closing costs and your down payment

• Get the keys to your new home

 Congratulations—you’re officially a homeowner!

Why Choose Community West for Your Mortgage?
We’re not just lenders—we’re your neighbors. As a credit union, we put people over profits, which means:

• Competitive rates and fewer fees

• Personal guidance from local experts

• First-time buyer programs and education

• Trusted partnerships with real estate agents, inspectors, and more

Whether you’re ready to buy now or still saving up, our team is here to support you every step of the way.