First-Time Homebuyer Help Center
It’s exciting to picture yourself in a new place – choosing a neighborhood, picking out colors you love, and making it your own.
But we also know it can feel confusing or stressful, especially when it comes to money. That’s where we come in.
Want your own place? We can help you get there – maybe sooner than you think.
Buying a home can feel hard – saving for a down payment, worrying about monthly bills, and figuring out where to start.
You’re not alone. We’re here to help you understand every step.
Our Home Loan team speaks in simple terms – no big words, no pressure. Just real people helping you find the best option for you right now.
Let’s talk about what’s possible for you.
We’ll help you find a payment that fits your life, so you can stop renting and start building your future.
Welcome to Your Homebuyer Resource Center
Just starting to learn about buying a home? You’re in the right place.
This center is full of helpful, easy-to-understand resources made for first-time homebuyers – especially if you’re still figuring things out or have questions about how it all works.
Whether you want to understand how much money you need, how loans work, or what to expect during the buying process, we’ve got you covered.
Take your time, read what matters to you, and come back anytime.
We’re here to help you feel confident, informed, and ready – step by step.
Questions
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I'm ready to buy a home – but where do I even begin?
Start with your finances first, then build your team. Before you fall in love with any property, get pre-approved for a mortgage to understand your budget. This involves checking your credit score, calculating your debt-to-income ratio, and gathering financial documents.
Next, assemble your homebuying team: a knowledgeable real estate agent who works with first-time buyers, your Valley First mortgage lender, and eventually a home inspector and real estate attorney (if required in your state). Your agent can guide you through local market conditions and help you understand what's realistic in your price range.
Finally, start researching neighborhoods that fit your lifestyle and commute needs. Drive through areas at different times of day, check school ratings if relevant, and consider future resale value even if you plan to stay long-term.
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What's a comfortable monthly payment that still lets me have a life?
The traditional 28% rule is a starting point, but your lifestyle matters more. Lenders often approve you for up to 28% of your gross monthly income for housing costs (including principal, interest, taxes, and insurance), but this doesn't account for your personal spending habits and goals.
Consider your total monthly expenses including student loans, car payments, savings goals, dining out, travel, and hobbies. Many financial experts suggest keeping total housing costs between 25-30% of your take-home pay to maintain financial flexibility.
Don't forget to factor in ongoing homeownership costs beyond your mortgage: maintenance and repairs (budget 1-3% of home value annually), utilities, HOA fees, and property taxes. A good rule of thumb is to ensure you can still save at least 10-15% of your income after all housing expenses.
If you want help improving your credit score, starting a budget or strategies for paying off debt, our Certified Financial Counselors are here to help best position you for buying your new home. Their services are free! Make an appointment today.
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What kinds of loans are out there, and which one might work for me?
Valley First offers 15-, 30- and 40-year mortgages and down payment assistance programs – each with their own advantages, designed to fit your needs.
Conventional loans require 3-20% down and typically offer the best rates if you have good credit (620+ score). If you put down less than 20%, you'll pay private mortgage insurance (PMI) until you reach 20% equity.
FHA loans are government-backed and accept lower credit scores (580+) with just 3.5% down, making them popular with first-time buyers. However, you'll pay mortgage insurance premiums for the life of the loan in most cases.
First-time homebuyer programs vary by state and locality, often offering down payment assistance, reduced rates, or tax credits.
Our down payment assistance programs can unlock your homeownership dreams. We offer First-Time, Low- and Middle-income programs that can help qualifying members with up to $50,000 down payment grants. Learn more
Your best option depends on your credit score, down payment savings, income level, and where you want to buy. Our lending team can help you identify loan options that best suit your needs and financial goals.
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What documents should I start gathering now?
It’s never too early to start preparing and organizing these documents to streamline your pre-approval and closing process:
Income verification: Two years of tax returns, recent pay stubs (typically last 30 days), W-2s from the past two years, and 1099s if you're self-employed or have contract income.
Asset documentation: Two to three months of bank statements for all accounts (checking, savings, investment accounts), documentation of any gift funds from family members, and retirement account statements if you're using those funds.
Credit and debt information: Recent credit reports from all three credit bureaus (TransUnion, Equifax, and Experian), statements for all debts (credit cards, student loans, auto loans), and documentation of any paid-off debts.
Employment verification: Contact information for HR departments, employment verification letters if you've recently changed jobs, or profit and loss statements if you're self-employed.
Additional paperwork: Driver's license or state ID, Social Security card, divorce decrees or child support documentation if applicable, and proof of any rental history.
Keep digital and physical copies organized in folders. The more prepared you are upfront, the faster your loan process will move when you find the right home.