First-Time Home Buyers
A clear walkthrough of every step, so you know exactly what's ahead before you make your first offer.
A Quick Note
This article is general information, not legal or lending advice. Loan and assistance programs change often and have their own requirements, so please confirm what applies to you with your lender and your attorney. I am a real estate professional, and my part is helping you find the home and walk the process.
What to Expect as a First-Time Buyer
Buying your first home means learning a lot at once: pre-approval, inspections, what you can negotiate, and what closing day looks like. I walk you through each step plainly as it comes up, so nothing catches you off guard and you are never guessing at what a term in your contract means. I would rather over-explain a clause than have you sign something you are unsure about.
How Much You Actually Need Down
Many first-time buyers assume they need twenty percent down, and they usually do not. The FHA allows a down payment as low as 3.5 percent for borrowers with a credit score of 580 or higher, and borrowers with scores from 500 to 579 can borrow up to 90 percent of the value, which means 10 percent down. Fannie Mae's HomeReady mortgage allows down payments as low as 3 percent, and if every borrower who will live in the home is a first-time buyer, at least one of them has to complete a homeownership education course. Your lender tells you which loan fits your credit and your income.
Programs for First-Time Buyers in the Carolinas
Each state has its own housing finance agency with programs worth asking about. In North Carolina, the NC Home Advantage Mortgage from the NC Housing Finance Agency pairs with the NC 1st Home Advantage Down Payment, which offers $15,000 in assistance as a 0 percent deferred second mortgage that is forgiven 20 percent a year in years 11 through 15. To qualify you generally have not owned a home as your principal residence in the past three years (veterans and buyers in targeted census tracts also qualify), you need a credit score of at least 640, and you must live in the home within 60 days of closing. Income and price limits apply.
In South Carolina, SC Housing offers the Palmetto Home Advantage program, which includes forgivable down payment assistance options and has no first-time buyer requirement, and the Made It Home program, which provides up to $25,000 in forgivable down payment and closing cost assistance as a zero-interest second mortgage forgiven after ten years if you stay in the home. Programs, amounts, and limits change, and some close during the year, so your lender confirms what is open today.
The Costs Nobody Mentions Up Front
The down payment is not the only cash you need. Earnest money goes into the deal when your offer is accepted. In North Carolina you may also pay a negotiated due diligence fee to the seller, and if you terminate during the due diligence period you typically do not get it back. You pay for your inspection, the appraisal your lender orders is another cost to plan for, and closing costs include your closing attorney. I list every one of these before you make an offer, so you see the real cash number and not just the price of the house.
From First Showing to Closing Day
The order matters: lender conversation, the agreement we sign together, the search, the offer, the due diligence period with inspections, the appraisal, and then a closing run by an attorney, as every residential closing in North Carolina and South Carolina is. See the full buying process for how each step works, or read the free Buyer Guide when you want it all in one place. If you have questions about buying in North and South Carolina, the contract differences are laid out there.
Pre-Approval, Inspection, and Appraisal in Plain Terms
A pre-approval means a lender has looked at your documents, not just your word, and told you how much they are willing to lend. It is different from a rough estimate you get by answering a few questions online. The inspection is a hired professional looking at the roof, heating and cooling, plumbing, electrical, and structure so you know what you are buying, and what the inspector finds becomes part of your negotiation. The appraisal is your lender's check that the home is worth the loan. Those are three different jobs, and I explain each one again as it comes up.
How I Work With First-Time Buyers
I personally walk every home with you, inland in North Carolina or on the coast in South Carolina, and run the numbers so you know what you are looking at before you fall for a house. You get a straight answer on every property, not just a tour, and I stay available for the questions that come up between showings. If you do not have a lender yet, I can point you to one. When you are ready, call me and we will start there.
Sources
The program and loan details above come from these sources, checked in October 2026. Programs change often, so your lender has the final word on what is available.
Frequently Asked Questions
Do I need a lot of money saved to buy my first home?
Usually less than people expect. The FHA allows as little as 3.5 percent down with a credit score of 580 or higher, Fannie Mae's HomeReady allows as little as 3 percent down, and the Carolinas have down payment assistance programs. Your lender confirms your real options.
What's the first step?
Getting pre-approved with a lender before we look at a house, so you know your real budget and can act fast when the right home shows up.
Are there first-time buyer programs in North Carolina and South Carolina?
Yes. The NC Housing Finance Agency and SC Housing both run programs with down payment assistance. Amounts, income limits, and credit requirements change, so your lender confirms what is open now.
Will you explain things I don't understand?
Yes. I would rather over-explain a term in your contract than have you sign something you are unsure about.
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