Buying your first home can feel like a maze, but it doesn’t have to be. In this guide we break down the most useful steps – from spotting the right loan to figuring out how much you can actually borrow. No jargon, just clear actions you can take today.
If you’re worried about a big down payment, an FHA loan might be your best friend. It lets you put down as little as 3.5% and has more flexible credit rules. Check the minimum credit score, required documentation, and the debt‑to‑income ratio before you apply. Most lenders will ask for proof of steady income, recent bank statements, and a short explanation of any large recent deposits.
Start with a simple mortgage calculator: enter your annual salary, existing debts and a realistic interest rate. For example, with a £70,000 salary you could qualify for a loan around £200‑£250k, depending on your credit score and other obligations. If you’re aiming for a £250,000 mortgage, banks typically want you to earn at least £40‑£45k a year and keep your total monthly debt payments under 36% of your income.
Location matters, too. In Ohio, first‑time buyer programs may lower the required credit score or offer down‑payment assistance. Make sure you meet the residency and purchase‑history rules – for instance, you must not have owned a home in the last three years to qualify for many state incentives.
Don’t forget about additional costs. Closing fees, stamp duty and moving expenses can add up quickly. budgeting an extra 5‑10% of the purchase price for these items will keep you from surprise out‑of‑pocket bills.
When you start looking at listings, focus on properties that match your budget after factoring in these extra costs. A cheaper house might end up more expensive if it needs major repairs or has high council tax.
Before you make an offer, get pre‑approval from a lender. A pre‑approval letter shows sellers you’re serious and can speed up the negotiation process. It also locks in an interest rate for a short period, protecting you from sudden rate hikes.
Finally, work with an estate agent who knows the first‑time buyer market. Look for agents who explain fees up front and can guide you through the paperwork. A good agent will help you spot hidden issues, like service charge spikes in shared‑ownership flats.
Take these steps one at a time, and you’ll move from feeling overwhelmed to feeling in control. Your first home is within reach – all it takes is a clear plan and a bit of homework.
