Purchasing your first home is thrilling, but the first-time buyer mortgage process can be like trying to learn a new language. From credit reports to forms and surprise setbacks, it’s simple to get overwhelmed. But here’s the best part: Millions of individuals get through this each year, and you can too with the proper preparation; you can fly through the first-time homebuyer mortgage process.
So, whether you’re imagining a Vegas condo for a couple of weekends a year or a suburban two-story for the family, let’s get you from “I have no idea where to start” to “I’m ready to make an offer!”
You’ll learn why pulling your credit early—and shooting for a score of at least 620—is important for getting a good rate. We’ll take you through collecting some key paperwork so you don’t leave it all to the last minute, from pay stubs to bank statements. You’ll learn to budget realistically for both down payment (a median 9% for newbies) and closing costs, which can add another 2–5% of the purchase price. We’ll also cover the most common snags—appraisals, inspections, title searches—and how staying responsive can keep your mortgage on track. Finally, you’ll see why partnering with the right lender, agent, and inspector is crucial to smooth sailing. Let’s dive in!
1. Check Your Credit Early—and Keep It Healthy
Before you even start browsing listings, your credit profile sets the tone for your entire mortgage process for first-time buyers.
- Why Your Credit Score Matters
Lenders rely on your credit score to estimate risk. The higher your score, the lower your interest rate will likely be, which could save you thousands over the life of your loan. Conventional mortgages typically have a minimum 620 credit score requirement, while FHA loans will accept as low as 580, but your rate will be improved with higher scores. - Target Ratios: The 28/36 Rule
Experts suggest paying no more than 28% of your gross monthly income towards housing expenses (including taxes and insurance) and maintaining total debt payments at or below 36%. This “28/36 rule” allows lenders—and you—to make sure you can easily manage your new mortgage. - Check for Errors & Dispute Early
Pull a credit report from all three bureaus at AnnualCreditReport.com. Errors—old collections, misreported balances—can lower your score. Dispute any errors now to prevent delays in pre-approval later.
2. Gather Your Paperwork in Advance
If there is one thing that surprises first-time homebuyers, it is the stack of documents required for a mortgage. No, lenders don’t take your word for it—they require proof. Among the largest time savers in the first-time homebuyer guide is staying organized from Day 1.
- Essential Documents You’ll Need
- Income proof: Last two years’ W-2s (or 1099s if self-employed)
- Pay stubs: Most recent 30–60 days
- Bank statements: Last two months for all accounts you’ll tap for down payment or reserves
- Tax returns: Two years’ worth, especially if you have investment income
- Proof of assets: Retirement, brokerage, gift letters, if someone’s helping you with the down payment
- Tips for Staying Organized
- Use a dedicated folder (digital or physical) labeled “Mortgage.”
- Create a simple checklist and tick off each item as you collect it
- Scan everything into clear PDFs so you can email them instantly when your lender asks
3. Budget for Down Payment and Closing Costs
Money talk can get real, real quick. Here’s what to expect in the first-time homebuyer mortgage process.
- Down Payment Expectations
The National Association of Realtors tracks a median first-time buyer down payment of 9% for 2024, considerably less than the frequently cited 20%. On a $350,000 house, that’s only $31,500. - Why It’s Not Always 20%
- Conventional loans can require as little as 3% down.
- FHA loans start at 3.5% if you meet credit criteria.
- VA/USDA loans often require zero down for eligible borrowers.
- Closing Costs Add Up
Plan to throw in another 2–5% of purchase price in closing fees (appraisal, title insurance, taxes, lender charges). On our $350,000 example, that’s $7,000–$17,500. - Plan for Hidden Expenses
- Home inspection: $300–$500
- Moving costs: Varies by distance and amount of stuff
- Initial repairs/renovations: Budget a small emergency fund
4. Expect Common Delays—and How to Avoid Them
Even the smoothest mortgage tips for first-time buyers can hit a snag. Here’s what stalls things and how to keep things rolling.
- Home Appraisal
Lenders order an appraisal to confirm the home’s value matches your offer.
- Delay risk: Scheduling and report turnaround can take 1–2 weeks.
- Avoidance tip: Be flexible on dates and have your agent push for priority scheduling.
- Home Inspection
A pro inspector hunts for problems—structural issues, roofing, and electrical.
- Delay risk: Inspectors can book out 1–3 weeks in busy markets.
- Avoidance tip: Schedule immediately after your offer is accepted.
- Title Search & Insurance
Ensures no hidden liens or ownership disputes.
- Delay risk: Rarely more than a few days, but can stretch if records are messy.
- Avoidance tip: Choose an experienced local title company that your realtor trusts.
- Underwriting
The lender’s final credit and collateral check.
- Delay risk: New documentation requests can pop up here.
- Avoidance tip: Stay on standby—quickly provide any additional paperwork.
- Rate Lock Window
Once pre-approved, you usually have 60–90 days to close at your quoted rate.
- Risk: If delays push you past that, you may need to pay a fee or accept a new rate.
- Avoidance tip: Lock in as soon as your appraisal is ordered.
5. Work with the Right Professionals
No one does the mortgage process for first-time buyers solo—these experts make it happen.
- Mortgage Lender
- Shop around: Get quotes from at least three lenders to compare rates and fees.
- Communication style: Choose someone who explains jargon clearly and responds fast.
- Real Estate Agent
- Look for an agent with first-time buyer experience in your area.
- Ask for references: How did they handle negotiations and tight timelines?
- Home Inspector
- Check credentials: Membership in ASHI or InterNACHI indicates rigor.
- Attend the inspection: Seeing issues firsthand helps you understand priorities.
- Title Company / Attorney
- Local expertise is key for clean title searches and smooth closings.
- Verify your settlement agent’s wiring instructions directly—wire fraud is real.
Bringing It All Together
Yes, the mortgage process for first-time buyers has steps, but they’re all manageable with the right guide. By checking your credit early, gathering paperwork in advance, budgeting realistically, anticipating delays, and surrounding yourself with trusted pros, you’ll move from excitement to keys-in-hand with confidence.
Ready to move forward? At A&P Lending Titans, we’ve assisted hundreds of first-time Las Vegas homebuyers in unlocking their dream home. Our staff streamlines the process, responds to your questions (no matter how minor), and battles to secure you the best rate available. Whether you’re worried about credit scores or simply need assistance comparing loan rates, we’ve got you covered.
Ready to get started? Let’s talk! Apply for pre-approval today or give us a call at 702-277-4994. Your new home is closer than you think.