Buying your first home when nobody in your family has bought one

Who to call first

Two people, in either order. A HUD-approved housing counselor gives you a homebuyer education class and one-on-one help that nobody in the transaction pays for; the Maryland Mortgage Program and many county programs require that class anyway. A licensed loan officer tells you what you could borrow, which loans fit, and what to fix first; in Maryland, that is what Paola does at New Priority Lending Corp.

Neither call commits you to anything. The counselor works for you; the loan officer cannot take an application or check your credit until you say you want to move forward, and then it happens in the lender’s secure portal, not by email.

• Verify the counseling agency in HUD’s directory before your first appointment.
• Verify the loan officer and company on NMLS Consumer Access.
• Ask both the same question: what should I work on before I shop?

Your budget is two numbers, not one

The number the lender gives you is the most it could lend, calculated from your gross income, your monthly debts, and your credit; lenders call that comparison your debt-to-income ratio (DTI), and each loan program sets its own limit. The number you give yourself is the payment that still leaves room for childcare, transportation, savings, and the family you may be helping. The CFPB is direct about this: focus on what is affordable given your other priorities, not on how much you qualify for.

The rent comparison is where first-generation buyers most often get misled. Paying $2,000 in rent does not mean a $2,000 mortgage is comfortable, because the mortgage payment adds property taxes, homeowners insurance, and often mortgage insurance or association fees, and because a lender qualifies you on income and debt, not on your rent history. The first-time homebuyer guide on this site shows the two calculations side by side.

The order things happen

Nobody explained the order to you, so here it is. Credit and budget first. Preapproval second. Then a real estate agent and the search. Then the offer and the contract, the full application and the Loan Estimate, underwriting and the appraisal, the Closing Disclosure, and closing day. The process guide on this site explains each step and the document you receive at it.

Next to each step, write who controls it: you, the agent, the loan officer, the underwriter, the settlement company. A conversation is not an application, a preapproval is not final approval, and a date on the contract is not a promise the loan will close that day.

Maryland programs, and the education they ask for

The Maryland Department of Housing and Community Development offers the Maryland Mortgage Program, described by the state as home loans and down payment assistance for people looking to become homeowners, together with homebuyer education and approved counseling resources. Maryland’s housing notices also recommend homebuyer education or counseling from a nonprofit or government agency before you sign loan documents.

Programs come through participating lenders and have income limits, price limits, and repayment or forgiveness terms that change. Ask the loan officer whether the lender participates and get the current written terms before you plan around any assistance; the down payment guide on this site explains how assistance and gift funds get documented.

The papers you will need, and where they go

Photo ID, recent pay stubs, W-2s and two years of tax returns, and two months of statements for the accounts you will use are the usual starting set; the loan officer adds what your situation needs. Keep complete pages and consistent names and addresses.

Documents go into the lender’s secure portal after the loan officer sends the link. Do not put a Social Security number, ITIN, date of birth, account number, or tax return into this website’s contact form, an ordinary email, or a text message, no matter who asks.

• What starts an application, and what authorizes a credit check?
• Which contract deadlines are mine to watch?
• Which money has to be documented, and for how far back?
• When will you need a newer version of a document I already sent?

Read the written terms before you commit

When the lender issues a Loan Estimate, read it as a package: loan terms, projected payments, costs at closing, cash to close, and what can change. Compare like with like rather than one advertised rate. If a program or assistance is part of the plan, ask for its exact current name, written rules, funding status, and repayment terms.

Do not sign anything you do not understand. Ask, and if the answer is not clear, ask the counselor. That is what they are for, and it is what a family member who had been through it would have told you.