Buying your first home is, for most people, the biggest purchase they'll ever make. That's a lot of pressure, and the process has a lot of moving parts: money, timelines, paperwork, and a dozen people you've never met all touching your file at once.
I'm Jeremy Roseth. I started Roseth Mortgage here in Elk River, and a big part of what we do is walk first-time buyers through exactly this. This guide covers the five things first-timers ask me about most: the steps, the money, the timeline, what's on your plate, and moving day. No fluff. Just what you actually need to know.
What's inside:
- Basic Steps
- Money
- Timeline
- Your Responsibilities
- Moving
Basic Steps
Here's the whole process from a bird's-eye view. Ten steps, start to keys.
1. Research. Figure out roughly what you can afford and what areas you want to live in. 2. Calculate. Look at your real monthly budget, not just the loan amount. Taxes, insurance, and upkeep are part of the payment. 3. Get pre-approved. This comes before you shop, not after. A pre-approval tells you your real price range and tells sellers you're serious. 4. Find a real estate agent. A good buyer's agent is your advocate through offers, inspections, and negotiations. 5. Shop. Tour homes that fit your pre-approved budget. 6. Make an offer. Your agent helps you write a competitive offer and negotiate terms. 7. Inspection. You hire an inspector to check the home's condition. This is separate from the appraisal and it's your call. 8. Underwriting. The lender verifies everything: income, assets, credit, the property. 9. Appraisal. The lender orders an independent appraisal to confirm the home is worth what you're paying. 10. Closing. You sign, the loan funds, and the home is yours.
A note on order: a lot of first-timers think they shop first and get the loan figured out later. It's the other way around. Pre-approval first saves you from falling in love with a house you can't finance, and it makes your offer stronger when you do find the one.
Money
This is the part that keeps people up at night, so let's be straight about it.
Terms worth knowing
- Interest rate vs. APR: The rate is the cost of borrowing the money. The APR folds in lender fees and points, so it's usually a bit higher. Use APR to compare two offers fairly.
- Pre-qualification vs. pre-approval: A pre-qual is a rough estimate based on what you tell us. A pre-approval means we've verified your income and credit, so you can make a real offer. Sellers know the difference.
- Down payment: The cash you put in up front, shown as a percentage of the price.
- PMI / MIP: Mortgage insurance you pay when you put down less than 20%. On a conventional loan it's PMI, and it can drop off later. On an FHA loan it's MIP, and it usually stays for the life of the loan.
- Closing costs: Lender, title, and government fees due at closing. Typically 2 to 5% of the purchase price.
- Escrow: The account that holds your property taxes and homeowner's insurance and bundles them into your monthly payment.
- DTI (debt-to-income): Your monthly debts divided by your gross monthly income. It's the main number that sizes how much you can borrow.
What a down payment looks like
The "20% down" idea scares a lot of first-time buyers off before they even start. The truth is most first-timers put down far less. Here's how the common loan types compare, using percentages so you can apply them to whatever price range you're shopping in:
- VA and USDA loans (for those who qualify): as little as 0% down
- FHA loans: typically around 3.5% down
- Conventional loans: as low as 3 to 5% down for many first-time buyers
- 20% down: optional, but it lets you skip monthly mortgage insurance
As an illustration: on a typical first-time buyer home, the difference between an FHA loan and a conventional loan is just a few percentage points of the purchase price up front. A smaller down payment gets you in the door sooner. A larger one lowers your monthly cost. There's no single right answer. It depends on how much cash you want to keep in your pocket versus how low you want the payment.
One thing to plan for either way: the down payment isn't the only cash you'll need. Closing costs typically run 2 to 5% of the purchase price, which can range significantly depending on the home's price and loan type. Knowing that up front beats getting surprised a few days before closing.
Help with the down payment
Some borrowers may qualify for down payment assistance programs offered through state housing finance agencies or through specific lender partners. We work with DPA lender partners that offer programs allowing eligible buyers to finance up to 100% on FHA loans, so the up-front cash hurdle is lower than most people expect. Whether you qualify depends on your income, location, and the program's rules. It's worth a conversation early, because it can change what "ready to buy" actually means for you.
Here's where the broker model earns its keep: we're not one bank with one set of products. We shop across 30+ lenders to match your situation (credit, income, down payment, the loan program that actually fits) instead of forcing you into the only box a single lender has. A bank can only sell you what's on its own shelf. We don't have that limit.
How the loan moves
1. Pre-approval. We verify your finances and confirm your real budget. 2. You find a home and make an offer within that budget. 3. Underwriting. Your income, assets, and credit get verified against the purchase agreement. 4. The lender orders the appraisal. You arrange your own inspection. 5. Once the appraisal clears and underwriting signs off, we schedule closing.
Timeline
How long does buying a home take? It depends, and I'll be honest about which parts I can control and which parts I can't.
The slow part is usually finding the house. That's up to you and the market. The financing is where we move fast.
- Pre-approval: Same business day. Once I have your application and income docs, you usually have your pre-approval letter the same business day, often within just a few hours.
- Building your home criteria: A few days. Figuring out what you actually want.
- Shopping and showings: 1 to 8 weeks. This is the wild card. Some buyers find it in a weekend, some take months. That's normal.
- Offer and negotiation: A few days to a week or two, depending on the seller.
- Appraisal: About a week, ordered as soon as you're under contract and running alongside underwriting.
- Underwriting to clear-to-close: This is where we stand apart. Our standard is 12 business days from the time your full file hits underwriting to clear-to-close. The industry norm is 30 to 45 days. We've built our process around not making you wait.
- Closing: A single signing appointment. Once that's done, the home is yours.
Your Responsibilities
You've got a team on your side: a loan officer, a real estate agent, an inspector, a title company. But some things only you can do. Here's your part:
- Have your financial records ready (proof of income, tax returns, bank statements).
- Learn the basic terms so you understand the rate and loan you're being offered.
- Keep copies of every document and agreement you sign.
- Arrange your down payment, or apply for assistance if you're using it.
- Show up for scheduled meetings and showings.
- Decide what you actually want and need in a home, and what you can live without.
- Stay in close contact with your agent.
- Take part in the inspection and review what it turns up.
- Negotiate repairs and closing-cost credits during the offer process.
- Know exactly what funds you need to bring to closing, and how to bring them.
- Make your moving arrangements.
One thing that makes this part easier: when you work with us, you work with a specific, named loan officer with a real cell number. No call center, no "press 4 for your loan status." When you have a question at 7 p.m. about what to bring to closing, you text the person handling your loan.
Moving
A few of the questions first-time buyers ask once the loan is done and moving day is in sight.
How soon can you move in?
As soon as you leave the closing table, the home is legally yours. You can schedule your move for that same day if you want to.
What do I bring to closing?
Three things you can't skip: a cashier's check (or wired funds) for your closing costs and down payment, a valid government-issued photo ID, and proof of your homeowner's insurance policy. Your loan officer and closing team will tell you the exact figures and wiring details ahead of time. Never trust last-minute wiring instructions that arrive by email without calling to confirm. Wire fraud in real estate is real, and a quick phone call protects you.
Should you hire movers?
Maybe. Moving is physically brutal, and a full day of it plus the cost of a truck rental adds up fast. If you've got a lot of stuff or a tight timeline, paying pros to pack and haul can be worth every dollar. If you've got friends and a free Saturday, do it yourself and buy them pizza.
What costs sneak up at the end?
The ones first-timers forget: professional cleaning, the moving truck or movers, re-keying or changing the locks (do this, since you have no idea who has a copy), and any small repairs you want done before you haul the couch in.
Do you need a move-in checklist?
Yes. No matter how organized you are, moving day gets chaotic. A simple checklist keeps you and everyone helping from missing things, and keeps the right boxes going to the right rooms.
Ready to Get Started?
If you're thinking about buying your first home, the best first move is a real conversation about your numbers. I can usually get you a pre-approval letter the same business day, often within just a few hours, and from there you'll know exactly what you're working with.
We're a mortgage broker, which means we shop 30+ lenders to find the loan that fits you instead of selling you the only one we've got. We're licensed in Minnesota, Michigan, Florida, Texas, Colorado, and Alabama, and we have Spanish-speaking support across our loan, processing, and closing team.
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Roseth Mortgage Jeremy Roseth | NMLS 376951 · Company NMLS 1818791 17781 Lincoln Street NW, Elk River, MN rosethmortgage.com | jeremyroseth@rosethmortgage.com · 952-992-9315
Examples shown are for educational purposes only. Actual loan terms, rates, and costs depend on individual qualifications. Roseth Mortgage NMLS 1818791. Equal Housing Lender.