Here’s how to get the most benefit from your first-time home buyer researching

As a first-time home buyer taking the plunge to home ownership is a big step. You need to be feeling good about your personal debts and cash flow. Here is what you want to consider when researching so you can make the most informed home buying decision…

The things you should consider when deciding whether to purchase a house are the three ingredients that takes to buy a house your cash, your credit and your income. To be successful as a home buyer you need to have a healthy blend of all three. Purchasing a house is equivalent to baking cookies from a financial standpoint. If you put in too many chocolate chips the cookies are not going to turn out properly it must be the right amount of each ingredient. Same holds true when purchasing your first home.

What is your income doing? Is your income stable going up or going down in the future? Are you going to be relocating at some point in the future? How much will you be able to save after a proposed mortgage payment and your other monthly expenses including any car loans student loans or credit cards? These are the sorts of things that can impact this financial decision.

Here is how you want to approach this with a lender… let’s say you’re thinking 10 to 12 months out based on your personal desire to purchase a home. You call around a couple of lenders and you ask them what home buying options they have? That’s the wrong approach. That’s the approach because no lender can accurately with integrity give you all sorts of options unless you’re willing to put the first foot forward financially.

More specifically, a lender is not going to have an answer to what home buying options are available to you as every borrower and every family is uniquely different. It’s too broad of a question.

What you need to do is pick a lender who is more interested in your specific financial criteria than they are interested in granting you a loan. That’s a hard thing to find as many lenders will just do whatever you tell them to do. You want a lender that comes from an advising standpoint who can clearly and accurately articulate where your income is, how financially sound this is and might mean for financially. You can go get a mortgage anywhere, but the loan officer that you work with that takes a proactive approach in really advising you about getting a mortgage, that’s the person whose advice you should taking to heart and that advice might mean not buying a house right now and getting some homework for some things to accomplish in the future and that’s quite ok.

When you engage with the lender, if they ask you to provide a loan application, do it. If they ask for the financials such as tax return for example, pay stubs or W-2 s provide them. A lender cannot and should not prescribe programs to you without having an actual basis to support anything that they’re recommending. If you have a lender recommending a loan program to go with and they have not seen your credit or supporting financial documentation turn around and run.

Do you want a lender that is willing to meet with you face-to-face to help you decide about buying a house or do you need a plan to become pre-approved in the future? Not all lenders operate like this. There are no one-size-fits-all home buying options for you and your family.

The best thing you could do for yourself financially as a would-be first-time home buyer would be to talk to a lender, complete a loan application (which is non-committal by the way) let them pull your credit and provide the supporting documentation they need and go sit down with them face-to-face. Yes, it’s going to require an investment of time on your part.

Here’s the question you should ask yourself is the inconvenience and the pain a putting together the financials and allowing the lender to look at my credit report and give me advice more painful than my current renting situation? If the answer is yes don’t purchase a house and continue renting. However if it’s not, in other words if it’s more painful to continue to rent and your desire to gain is greater than the inconvenience of sitting with the lender then by all means go sit down with someone who can pragmatically answer your questions so you can get the full clarity experience you deserve as a first-time home buyer.

It is possible some lenders might have different opinions about what you should do or not do an ultimately the person that can make that decision can and should be you. You want the lender that is going to custom tailor a mortgage specific to your goals and where you are financially at whatever point in life you are.

 

Looking to buy a home? Get a no cost quote now.

RELATED MORTGAGE ADVICE FROM SCOTT SHELDON

"How Seller Credits Can Help You Maximize Savings on FHA and Conventional Loans" explaining what seller credits are, how they can be used for closing costs or interest rate buy-downs, the FHA 6% seller credit allowance, and a comparison table of conventional loan seller credit limits based on down payment. Includes a pie chart showing a split of 3% used for closing costs and 3% for interest rate buy-down.

How seller credit maximize your purchasing power on a conventional or FHA home loan

Maximizing Your Home Buying Power with Seller Credits When purchasing a home, every dollar counts.…

When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

The Risks of Chasing a Lower Mortgage Rate

Why Chasing a Lower Mortgage Rate Can Backfire When buying a home, it’s natural to…

A woman sitting at a kitchen table looking through documents with an American flag and framed military photo beside her, symbolizing a surviving spouse exploring VA loan options.

VA Loan Options for Surviving Spouses

Understanding VA Loan Refinance Options for Surviving Spouses Losing a spouse is one of life’s…

Smiling man holding a "Mortgage Approved" sign in front of a modern home and a DSCR loan presentation board showing rental income exceeding mortgage payments.

How to Buy a Home Without a Job Using a Rental Property Loan Strategy

If you’ve got solid credit and a decent amount of cash on hand—but no W2…

View More from The Mortgage Files:

begin your mortgage journey with sonoma county mortgages

Let us make your mortgage experience easy. Trust our expertise to get you your best mortgage rate. Click below to start turning your home dreams into reality today!