Advertiser Disclosure: The credit card and banking offers that appear on this site are from credit card companies and banks from which MoneyCrashers.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. MoneyCrashers.com does not include all banks, credit card companies or all available credit card offers, although best efforts are made to include a comprehensive list of offers regardless of compensation. Advertiser partners include American Express, Chase, U.S. Bank, and Barclaycard, among others.
Your credit reports are an ongoing record of how you've managed your finances. You should know exactly what they say about your financial history before you apply for a mortgage. These reports and your credit score play an important role in the loan approval process, and they also determine your interest rate and other loan terms that lenders will offer you.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
Because repeat buyers can often put some of the money from their previous home sale towards their down payment, they’re more likely than first-time buyers to put down larger lump sums. First-time buyers, however, are more likely to put down between 3 and 9 percent. According to a Zillow survey, only 37 percent of first-time buyers pay 20 percent or more.
Outside of these Fannie Mae, FHA, VA and USDA loan types, there are state and local assistance programs that can help you get into a home with a low-down payment. There are also towns that offer incentives to move there, ranging from student loan forgiveness to free lots of land to build on. Even though these programs don’t cover your down payment for you, they can help you save money elsewhere if you can come up with the initial down payment up front.
How you progress through a home buying transaction can vary somewhat depending on the real estate laws and customs where you live, but many steps are standard. You'll feel more confident about your home-buying journey when you understand the chain of events and what's required of you, as well as every other person who's involved in the transaction.

Pre-approval requires the lender to pull the credit information (see Step 1) and assess your financial situation. The lender will then give you a letter that states the amount they would be willing to lend you. If you get in a multiple-offer scenario, being pre-approved may give you an edge because the seller will have more confidence that you will be approved for a loan large enough to purchase their home.

Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.


Pre-approval requires the lender to pull the credit information (see Step 1) and assess your financial situation. The lender will then give you a letter that states the amount they would be willing to lend you. If you get in a multiple-offer scenario, being pre-approved may give you an edge because the seller will have more confidence that you will be approved for a loan large enough to purchase their home.
Fantastic Lake View Terrace/Sylmar Shadow Mountain Trails TOWNHOUSE! Nicely remodeled throughout – interior location. Three bedrooms, two and a half baths. Newer hardwood floors, formal living area with fireplace. The kitchen features plenty of countertop and storage space, and newer stainless steel appliances, leading to the dining area. A walk in laundry room and powder room round out the main level. All three bedrooms are upstairs, highlighted by a fantastic master bedroom suite with spa like full bath. Two generously sized bedrooms share another remodeled full bath. Oversized direct access garage with tons of storage. Well maintained HOA complex with pool, spa and horse stables availabl
Nevertheless, scraping together a down payment is a tall order, especially for first-time homebuyers in expensive coastal markets. According to CoreLogic, the average home price in California’s Bay Area topped $700,000 in 2016 – and that figure includes relatively inexpensive bungalows in East Bay suburbs, as well as ultra-pricey row houses in San Francisco proper.
Pre-approval requires the lender to pull the credit information (see Step 1) and assess your financial situation. The lender will then give you a letter that states the amount they would be willing to lend you. If you get in a multiple-offer scenario, being pre-approved may give you an edge because the seller will have more confidence that you will be approved for a loan large enough to purchase their home.
×