FIRST TIME HOME BUYERS

Being a “First-Time Homebuyer” isn’t just about buying your very first home. You may qualify for closing cost or down payment assistance under one of these often-overlooked criteria:

1) You have never purchased a home.
2) You haven’t owned a home in three years or more.
3) Your spouse has owned a home, but you have not.
4) You are a single parent who previously owned a home with a former spouse while married.

Pre-qualification is a quick estimate of what you might be able to borrow. It’s usually based on self-reported information (income, debts, assets) and doesn’t involve verifying your financials. Think of it as a casual “ballpark figure.”

Pre-approval, on the other hand, is the real deal. The lender reviews your credit report, income documents, tax returns, and assets. You’ll get a written letter stating how much you’re actually approved to borrow. This carries much more weight with sellers and can strengthen your offer.

Your credit score has a big impact on your mortgage rate — it tells lenders how risky it is to lend to you.

Here’s how it plays out:

Higher scores (740+) usually qualify for the lowest interest rates and best loan terms.
Mid-range scores (around 660–739) can still get solid rates, but they’ll be slightly higher.
Lower scores (below 620) often mean higher rates, fewer loan options, or the need for a larger down payment.

Even a small rate difference matters — a one-point change can add up to thousands of dollars over the life of a loan.

Closing costs are the fees and expenses you pay at the end of a real estate transaction — basically, the price tag for finalizing your home purchase.

They cover things like:

Lender fees: loan origination, underwriting, and credit report
Title and escrow fees: title search, title insurance, and settlement services
Prepaid items: property taxes, homeowners' insurance, and interest
Other costs: appraisals, inspections, and recording fees

In Indiana, buyers typically pay 2%–5% of the home’s purchase price in closing costs. For example, on a $300,000 home, that’s roughly $6,000–$15,000.

Sometimes sellers may offer credits to help cover these expenses, especially in a buyer-friendly market.

From offer to closing, the homebuying process typically takes 30 to 45 days, though it can vary based on the loan type, market conditions, and how quickly everyone submits paperwork.

Here’s a quick breakdown:

Pre-approval: 1–5 days (depending on how fast you provide documents)
Home search: anywhere from a weekend to several months
Offer and negotiation: 1–7 days
Inspection and appraisal: 1–3 weeks
Loan underwriting and final approval: 2–4 weeks
Closing: usually scheduled within a few days of final loan approval

If everything goes smoothly — no title issues, appraisal delays, or repair surprises — you can be in your new home in about a month.

Yes, you can — it just takes a bit more documentation and patience.

Lenders want to see consistent income, so if you’re self-employed or have irregular earnings, expect to provide:

1) Two years of tax returns (personal and business, if applicable)
2) Year-to-date profit and loss statements
3) Bank statements showing steady deposits
4) Possibly a letter from your CPA verifying your income history

They’ll average your income over the past two years to determine what you qualify for. The stronger and more stable your numbers, the better your chances of getting approved.

Pro tip: Keep business and personal finances separate — it makes verification easier and helps avoid confusion during underwriting.

Your monthly mortgage payment typically includes several components beyond just paying down the loan:

1) Principal: The portion that reduces your loan balance.
2) Interest: What the lender charges for borrowing money.
3) Taxes: Property taxes, often collected by your lender and held in escrow.
4) Insurance: Homeowners insurance and, if required, mortgage insurance (PMI for low down payments).

A quick way to remember it is PITI — Principal, Interest, Taxes, Insurance.