Start with your finances
The most common mistake first-time buyers make is touring homes before talking to a lender. Without pre-approval, you don't know what you can afford, and your offers won't be taken seriously when you find a home.
Talk to two or three lenders. Look at independent brokers and big banks. Compare interest rates, closing costs, and (just as important) how responsive each lender is. Get pre-approved in writing.
Understand the real costs
First-time buyers often focus on the down payment and miss the other costs. Plan for:
- Down payment. 3-20% of purchase price, depending on loan type.
- Closing costs. 2-3% of purchase price for lender fees, title, escrow, taxes.
- Earnest money. 1-3% of purchase price at offer acceptance (applied to closing).
- Inspection. $500-800.
- Appraisal. $700-1,000.
- Moving costs. $500-3,000 depending on how much you have.
- First few months of upgrades. Plan for at least $5-10K in unexpected first-year expenses.
First-time buyer programs available in Seattle
Several programs help first-time buyers:
- FHA loans. 3.5% down, more flexible credit requirements.
- VA loans. Zero down for qualifying veterans and service members.
- Washington State Housing Finance Commission. Down payment assistance for income-qualified buyers.
- Conventional 97. 3% down for qualified buyers.
- Seattle's Home Buyer Program. City-administered down payment assistance for income-qualified buyers.
The process, step by step
From pre-approval to keys, expect 8-16 weeks. The first half is search; the second half is escrow. Heather has walked hundreds of first-time buyers through this and answers every question — including the ones you'll feel silly asking. (You shouldn't. They're all good questions the first time.)