What Most First-Time Homebuyers Wish They Knew Before Their Purchase

If you're a first-time homebuyer, it's essential that you arm yourself with knowledge. This is what most buyers wish they knew beforehand.
Jan 18, 2023

If you're a first-time homebuyer, know that you're not alone. Over 45% of homebuyers are doing so for the first time, and we love to help first-time buyers make it happen in the smoothest possible fashion. Financing is often the most confusing part, but with our help, we can make it fast, easy, and even enjoyable!

Here's what most first-time buyers wish they knew before they started the homebuying process.

Down Payments: The Myth of 20%

Worried that if you don't have a big down payment, you can't buy? Not true! One of the biggest misconceptions about home financing is that a 20% down payment is required for homeownership. 

Several home financing options offer 0-5% down! Although it's important to note that anything less than 20% will often require mortgage insurance. But even then, the opportunity to purchase real estate, even with the insurance requirement, is highly advantageous to first-time homebuyers.

Loans Aren't One-Size-Fits-All

Just as homes come in different styles and price points, so are the ways you can finance your home purchase. There are several loan options; it's just about deciding which is best for you. That's where a trusted loan advisor comes in.

Many may assume the best choice is the classic 30-year fixed loan, which offers many advantages, such as a set interest rate. But it may not be the best fit. 

For example, a government-backed loan might be a good option if a low credit score is your primary hurdle. FHA, VA, and USDA loans offer impressive financing options for people with lower credit scores, low down payments, or people looking to live in a rural area. 

Getting Pre-Approved Early Matters!

Pre-approval plays a major role in buying a home, and shopping without it can become a significant barrier. In fact, doing it early on will prove to be beneficial.

Getting pre-approved before home shopping will help you shop within your budget, avoiding potential disappointment down the road. 

Doing it early also helps you catch any errors on your credit report to give you time to fix them. A higher credit score could mean a lower interest rate, which could translate to saving tens of thousands of dollars in interest payments over the life of your loan.

Most importantly, getting pre-approved may also prove to realtor agents that you are a serious shopper. Buyers who use an agent are more likely to request pre-approval, suggesting that their agent highly recommends pre-approval.

The Bottom Line

It's valuable to research different loan types to guarantee you're getting the best possible choice for your unique financial situation.

Of course, you don't have to do it alone --that's why we're the professionals! We work on your behalf, not the sellers, to ensure that your best interest is at the forefront as you purchase your first home.

✅ Benefits of Contract Loan Processing for VA Loans

  1. Specialized VA Knowledge

    • VA loans have unique requirements (COE, residual income, funding fee calculations, appraisal requirements).

    • A contract processor experienced in VA loans can spot potential issues early and streamline the process.

  2. Cost Savings for Lenders

    • No need to hire full-time staff; processors are paid per file.

    • Helps smaller brokerages or lenders manage fluctuating loan volumes without carrying extra payroll.

  3. Faster Turn Times

    • Contract processors often work remotely and are paid per closed file, so they’re incentivized to move loans quickly.

    • They can push COE requests, follow up on VA appraisals, and ensure VA-specific forms (26-1880, 26-8923) are completed on time.

  4. Compliance & Accuracy

    • VA has strict guidelines (e.g., allowable fees, seller concessions, and veteran protections).

    • A skilled processor reduces risk of compliance errors that could lead to loan buybacks or funding delays.

  5. Scalability

    • During high volume seasons (e.g., rate drops, PCS military moves), lenders can bring on extra processors quickly without long-term HR commitments.

  6. Reduced Loan Officer Burden

    • Lets LOs focus on originating, networking, and serving clients while the processor handles gathering DD-214s, income docs, pest inspection reports (if required), and underwriting conditions.

  7. Improved Borrower Experience

    • Veterans and active-duty borrowers often value clear communication and speed.

    • A processor who knows the VA process can anticipate documentation needs and prevent last-minute surprises.


👉 In short: Contract processors help lenders stay lean, compliant, and efficient, while ensuring veterans have a smoother experience.