5 New Homebuyer Tips Everyone Should Know Before Applying

🔎 Disclosure: Heads up, babe: some links here are affiliate links, which means you might throw a tiny commission my way if you buy (zero extra cost to you). Only things you’d actually use and love get shared on this site.

1. Save For A High Down Payment

The more you put down upfront, the less you’ll stress later.

A bigger down payment means smaller monthly payments and less interest over time.

It’s the simplest way to save thousands without even trying.

Here’s why it’s worth it:

• Lower payments. You borrow less, so your mortgage is smaller.
  
• Better loan terms. Lenders reward bigger down payments with lower rates.
  
• Instant equity. You own more of your home from day one.
  

👉 Here’s How You’ll Do It: Set a fixed monthly goal for your down payment savings and treat it like a non-negotiable bill.

Make It Easy: Open a Betterment Cash Reserve Account to automate savings and earn higher interest safely while you prepare.

2. Save For Closing Costs

Many first-time buyers forget that buying a home costs more than just the down payment.

Closing costs can sneak up on you and wipe out your savings fast.

Planning keeps you from panicking at the finish line.

Here’s what those costs include:

• Inspection and appraisal fees. To make sure your new home’s value matches the price.
  
• Title and legal fees. Paperwork and protection come at a price.
  
• Lender fees. Origination and processing costs often surprise buyers.
  

👉 Here’s How You’ll Do It: Budget an extra 2–5% of your home’s price for closing costs. Yes, that much.

Make It Easy: Keep a separate closing fund envelope so that money stays untouched until needed.

3. Compare Many Lenders And Rates

Not all mortgages are created equal, and you’d be shocked at how much rates can vary.

Even a small difference in interest can cost you tens of thousands over the years.

So shop around like your future depends on it. because it does.

Here’s why comparing matters:

• Rate differences. Even 0.5% can save thousands over time.
  
• Loan flexibility. Some lenders offer perks, others don’t.
  
• Negotiation power. Multiple quotes give you leverage to get better terms.
  

👉 Here’s How You’ll Do It: Collect at least three loan estimates from different lenders and compare them side by side before deciding.

Make It Easy: Use LendingTree to compare multiple lenders instantly and find the best deal in minutes.

4. Pay Off All The Debt You Can

Your existing debt plays a big role in whether you’ll get approved.

The less debt you have, the stronger your application. and the lower your stress later.

A clean slate also helps you qualify for better interest rates.

Here’s why it pays off (literally):

• Improved credit score. Paying down balances boosts your approval odds.
  
• Lower debt-to-income ratio. Lenders love to see less monthly debt.
  
• More flexibility. You’ll handle new costs without drowning.
  

👉 Here’s How You’ll Do It: Focus on paying off small debts first to build momentum and free up money for larger ones.

Make It Easy: Use Undebt.it to organize your debts and follow a snowball or avalanche payoff plan.

5. Get Preapproved For A Mortgage

Preapproval shows sellers you’re serious. And it gives you a clear price range to shop within.

Without it, you’re basically house-hunting blind.

It also helps you move fast when you find the right home.

Here’s what it does for you:

• Sets a clear budget. No surprises about what you can afford.
  
• Strengthens your offer. Sellers prefer buyers ready to close.
  
• Speeds up approval. Half the paperwork is already done.
  

👉 Here’s How You’ll Do It: Gather your income documents, check your credit, and apply for preapproval before browsing listings.

Make It Easy: Keep a folder of pay stubs, tax forms, and ID copies ready to send quickly to lenders.

📌 SAVE IT FOR LATER! 📌