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Key takeaways:
- First-time homebuyers can feel intimidated by the homebuying process. However, there are resources that can help them prepare to enter the housing market.
- Chase Home Lending has created a guide of essential topics and tips that can help first-time buyers start their journey to homeownership with confidence.
If you've never bought a home before, the idea of starting the process can be frightening. The good news? You don't have to do it alone.
To help you start your journey, Chase Home Lending offers this essential primer on the key aspects of homeownership that first-time buyers should know before entering the market.
Let a home lending professional be your guide
Before you begin searching for your home, consult a home lending professional. They can help you get preapproved, navigate the homebuying market and review loan options.
What are all the costs of homeownership
If you're making the move from renting to owning, you may be focused on the opportunity to build home equity but perhaps overlook the added costs like property taxes and home maintenance. Taking the time to understand the full scope of homeownership can help you decide if the time is right to buy.
Explore educational resources
If you're a first-time buyer, the homebuying process can seem overwhelming. However, there are many resources available to help boost your homebuying knowledge, such as how-to guides, webinars and podcasts.
Pro tip: Make sure to check the Chase Homebuyer Education Center, where you'll find answers to mortgage questions, useful tips for buying and maintaining a home and an Affordability Calculator that can help you determine how much home you can afford.
Learn about the factors that determine the mortgage approval process
During the mortgage approval process, lenders carefully review several factors that determine if they'll approve your mortgage and at what rate. Two important factors that influence their decision are your credit score and debt-to-income ratio.
Your debt-to-income ratio - how much of your gross monthly income goes toward monthly debt payments like rent, student and auto loans and credit card payments - helps creditors assess your financial health and creditworthiness. Lenders typically want to see that your DTI is low, as it tells them you'll be able to manage your monthly payments with minimal issues.
Your credit score helps determine the interest rate and other costs you pay on a mortgage loan. If your credit score is high, it tells lenders that you have paid your bills on time and that you are responsible with your money, making you a more attractive candidate for a home loan.
Understand your options beyond conventional loans
Interest rates and fees can vary widely across lenders. Taking the time to compare options from banks, credit unions and online loan providers can help secure a better rate.
Don't forget that loans come in all different shapes and sizes. Conventional loans aren't your only option. There are programs like FHA* and VA** loans, plus other options like fixed-rate mortgages, adjustable-rate mortgages*** (ARMs) and low-down-payment loans that can provide greater flexibility and help with affordability.
Contrary to popular belief, you don't need a 20% down payment to purchase a home.
Create and stick to a monthly budget
Determining and sticking to a monthly budget is crucial to successful homeownership. Beyond the mortgage payment, you'll have to budget for repair and maintenance costs, property taxes, insurance premiums and more.
Consider "practicing" your monthly payment to prepare yourself for what it will be like to have a mortgage. Doing so can help you get a better sense of your budget so you can be financially and mentally prepared for the investment.
Pro tip: Be sure to research property taxes and insurance premiums in the area where you plan to buy. These costs can significantly impact your overall budget and limit or expand your neighborhood options.
Don't be discouraged by a down payment
Contrary to popular belief, you don't need a 20% down payment to purchase a home. In fact, according to the National Association of Realtors' 2025 Profile of Home Buyers, the median down payment among first-time buyers was 10%. Also, keep in mind that some home loans may require only a smaller down payment of 3-5%.
Before you start your homebuying journey, commit to learning about the path to homeownership and make a plan to buy your dream home. To learn more about homeownership, mortgage rates, budgeting and more, visit Chase.com/Afford.
LEGAL DISCLAIMERS
* FHA loans require an up-front mortgage insurance premium (UFMIP), which may be financed, or paid at closing, and an FHA annual mortgage insurance premium (MIP) paid monthly will also apply.
** Veterans, Servicemembers, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs (VA). A Certificate of Eligibility (COE) from the VA is required to document eligibility. Restrictions and limitations apply.
You may be required to pay a funding fee unless the VA determines you are exempt. Exempt status is determined by the VA and confirmed through a COE. This one-time fee may be financed into your loan in most cases and is paid directly to the VA.
*** Estimated payments do not include amounts for taxes, homeowners insurance, or mortgage insurance (if applicable). Actual payments will be higher.
For informational/educational purposes only: Views and strategies described in this article or provided via links may not be appropriate for everyone and are not intended as specific advice/recommendation for any business. Information has been obtained from sources believed to be reliable, but JPMorgan Chase & Co. or its affiliates and/or subsidiaries do not warrant its completeness or accuracy. The material is not intended to provide legal, tax, or financial advice or to indicate the availability or suitability of any JPMorgan Chase Bank, N.A. product or service. You should carefully consider your needs and objectives before making any decisions and consult the appropriate professional(s). Outlooks and past performance are not guarantees of future results. JPMorgan Chase & Co. and its affiliates are not responsible for, and do not provide or endorse third party products, services, or other content. See full disclosures at Chase.com/Afford.
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