The homebuying process has more steps and more specialized language than most first-time buyers expect. That gap — between what people think they know going in and what they actually need to understand — is where costly mistakes happen. This guide is built to close that gap: plain language, specific details, and no skipped steps.
We work with first-time buyers across Massachusetts and New Hampshire regularly. The questions in this guide are the ones our clients ask us — before, during, and after their first purchase. For a broader overview of the buying process, see our general buyer guide. For details on how MA and NH differ, see the MA vs. NH comparison guide.
What you actually need to qualify
Most first-time buyers start with two fears: that their credit is not good enough and that they do not have enough saved. In many cases, both concerns are more manageable than they think — and in some cases, acting on those concerns requires genuinely doing the work first. Either way, understanding where you stand is the starting point.
Credit score. Conventional loans generally require a minimum score of 620, though you will access better rates at 700 and significantly better rates above 740. FHA loans — insured by the Federal Housing Administration — allow scores as low as 580 with a 3.5% down payment. Your credit score is not fixed; specific actions (paying down revolving balances, removing errors from your report, avoiding new credit inquiries) can meaningfully improve it in 60 to 90 days.
Debt-to-income ratio (DTI). This is the percentage of your gross monthly income that goes toward debt payments — including the new mortgage. Most conventional lenders want your total DTI at or below 43% to 45%. If you carry significant student loan, car loan, or credit card debt, this ratio matters as much as your credit score in determining what you qualify for. Running the numbers before you start searching helps avoid being surprised later.
Employment and income verification. Lenders want two years of consistent employment history, documented through tax returns and pay stubs. Self-employed buyers can qualify but typically need two years of tax returns showing sufficient income, which sometimes means 1099 income is averaged rather than taken at its current level. Gaps in employment history require explanation and documentation.
The most important step: talk to a lender before you start searching. Not to get approved — to understand your actual position. A good lender gives you a clear picture, identifies anything that needs addressing, and tells you exactly what documentation you will need when you are ready to apply formally.
The down payment reality
You do not need 20% down. This is the single most pervasive myth in residential real estate, and it prevents more first-time buyers from moving forward than any other misunderstanding. Here is what the actual options look like.
- FHA loans: 3.5% down with a 580+ credit score. Mortgage insurance is required for the life of the loan (or until you refinance into a conventional loan). These are insured by the federal government and are widely available through most lenders.
- Conventional 97 / HomeReady / Home Possible: Conventional loans available at 3% down for first-time buyers. Mortgage insurance is required until you reach 20% equity, but it can be cancelled — unlike FHA mortgage insurance at the base level.
- MassHousing: Massachusetts-specific programs offering below-market rate mortgages and down payment assistance for eligible buyers. Income and purchase price limits apply. Programs are administered through participating lenders and are particularly valuable for buyers in the moderate-income range. More information is available at masshousing.com.
- NH Housing: New Hampshire's state housing finance agency offers similar programs for NH buyers, including the Home Flex Plus product that provides assistance with both down payment and closing costs. Details at nhhfa.org.
- VA loans: For eligible veterans and active military, VA loans require zero down payment and no mortgage insurance. These are among the most favorable loan products available.
The tradeoff with lower down payments is a higher monthly payment and, in most cases, the added cost of private mortgage insurance (PMI) — typically 0.5% to 1% of the loan amount annually. For many buyers, this cost is still lower than what they are currently paying in rent, making the buy-now calculus favorable even without a large down payment saved.
For more on how we work with buyers at all stages of financial readiness, visit our first-time buyer page.
The hidden costs nobody talks about
Beyond the down payment, first-time buyers are routinely surprised by the volume of additional costs that come with a purchase. Understanding them in advance means they do not derail your plans.
| Cost | Typical Range | Notes |
|---|---|---|
| Home inspection | $450–$750 | Paid at time of inspection, before closing. Non-refundable. |
| Appraisal | $500–$800 | Ordered by your lender; paid by the buyer. Required for financed purchases. |
| Attorney fees | $800–$1,500 | Real estate attorney review and closing representation. Required in MA; strongly recommended in NH. |
| Title search and insurance | $600–$1,200 | Lender's title insurance is required; owner's title insurance is strongly recommended. |
| Lender origination fees | 0.5%–1% of loan | Varies by lender and loan product. Negotiate this. |
| Prepaid escrow items | 2–3 months | Property taxes and homeowners insurance prepaid at closing into escrow. |
| Moving costs | $1,000–$3,500+ | Varies significantly by distance and volume. Get multiple quotes. |
The total of these costs, plus your down payment, is what you need to have available — not just the down payment. On a $400,000 purchase with 5% down and 2.5% in closing costs, you are looking at $20,000 in down payment plus approximately $10,000 in closing costs — $30,000 total before moving costs. This is still manageable for many buyers, especially with down payment assistance programs, but it requires knowing the number in advance.
Your first 30 days of searching
Once your financing is in place, the search begins — and for first-time buyers, this period often involves recalibrating expectations against reality. That recalibration is healthy and necessary.
Start with a clear list of non-negotiables: minimum number of bedrooms, whether you need a garage or yard, your maximum comfortable commute, and any school district requirements. Be honest with yourself about which of these are truly essential versus which are preferences.
Set up automated alerts on the MLS and on Zillow and Realtor.com for your criteria. In MA and NH, well-priced homes in desirable areas move quickly — within a weekend in some markets. Being alerted the moment something comes on the market and being able to schedule a showing the same day matters.
In your first few weeks of touring, prioritize learning over finding. Each showing teaches you something: what the price range actually buys in different neighborhoods, what layout works for your life, what you were wrong about when you built your criteria list. The buyers who make strong, confident offers are the ones who have done enough showings to know what good looks like at their price point.
Also, think beyond the listing photos. Many first-time buyers choose not to tour homes because photos look dated or the staging is poor — and miss genuinely good bones at an accessible price. Conversely, beautifully photographed homes occasionally disappoint in person. Tour with your own eyes.
Your first offer
The first offer is where many first-time buyers feel the most uncertainty. There are three common mistakes — and all of them are avoidable with preparation.
Mistake 1: Offering too low out of principle. The idea that all sellers expect to negotiate down from asking price is outdated in most MA and NH markets. A well-priced home that has been on the market for one week does not need a lowball offer — it needs a competitive offer, or you will lose it to another buyer who understood the market better.
Mistake 2: Waiving contingencies you do not fully understand. Inspection and financing contingencies exist to protect you. Waiving them may strengthen your offer, but it also removes your exit options if something goes wrong. We discuss the specific risk of each contingency waiver for each property, based on what we know about the home and the competing offer landscape.
Mistake 3: Waiting too long to decide. In a competitive market, deliberating over an offer for days often means the home goes to someone who decided faster. Having your criteria clear and your team aligned before the right home appears means you can act with confidence when it does.
The Offer to Purchase in Massachusetts and New Hampshire is a legally binding document once accepted. Your attorney reviews it, but you need to understand what you are signing. We walk through every line with our clients before submission.
Inspection and what to do with the results
The home inspection is one of the most important two to four hours of the homebuying process. Attend it in person. Walk through the property with the inspector, ask questions, and take notes. Reading a report alone is a pale substitute for hearing an experienced inspector explain what they found and why it matters.
After the inspection, you will receive a written report documenting everything the inspector observed. This report will contain a mix of true deficiencies, deferred maintenance items, and standard observations about age and condition. Not everything in a home inspection report requires action — every home has a report, and every report has findings.
Focus on structural, mechanical, and safety items first: foundation concerns, roof condition, HVAC functionality, electrical panel safety, and evidence of active water intrusion. These are the items with the most material impact on value and livability.
After reviewing the inspection together, we advise on whether to request repairs, negotiate a price adjustment, accept the home as-is, or — in cases of serious findings — exit the contract. The goal is not to extract every possible concession; it is to ensure you are making a well-informed decision and that the transaction reflects the true condition of the property.
Closing day demystified
Closing day should not be a surprise. By the time you reach it, you have seen the Closing Disclosure (which itemizes every cost and credit) at least three business days in advance, done your final walk-through, and confirmed the wire transfer or cashier's check amount with your attorney.
You arrive at the closing location — typically a title company or law office — with your identification and your payment. You sign a stack of documents including the deed, the mortgage note, and a number of federally required disclosures. Your attorney walks you through each one. The process takes one to three hours.
After the signing, the title company records the deed with the county and the funds are disbursed. You receive the keys. At that point, the home is yours.
If you are also thinking about selling a current home to fund this purchase, see how we work with sellers to understand how the timing of both transactions can be coordinated.