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Your First Home Is Within Reach, Let's Get You There
Buying your first home is a big step. We make the mortgage process clear and personal, so you can move forward with confidence.
If you've been thinking about buying a home but aren't sure where to start, you're in the right place. The homebuying process can feel overwhelming from the outside with unfamiliar terms, paperwork, and big decisions at every turn. But with the right guidance, it's a lot more manageable than it looks.
At Preferred Mortgage, we work with first-time buyers throughout California every day. We'll help you understand your options, figure out what you can realistically afford, and find a loan that fits your life, not just your income.
You don't need to have everything figured out before you reach out. That's what we're here for.
Who Qualifies As A First Time Home Buyer?
You might assume the answer is obvious — but the definition is broader than most people expect.
For most loan programs and down payment assistance options, a first-time home buyer is defined as someone who has not owned a primary residence in the past three years. That means even if you've owned a home before, you may still qualify for first-time buyer programs if enough time has passed.
You may qualify as a first-time buyer if:
- You've never owned a home before
- You haven't owned a primary residence in the last three years
- You previously owned a home jointly with a spouse, but are now purchasing on your own
- You previously owned a home that was not permanently attached to a permanent foundation
If you're unsure whether you qualify, don't assume you don't. Our team can quickly help you determine your eligibility and which programs may be available to you.
A fixed-rate mortgage offers several advantages for homebuyers who want financial stability and long-term predictability.
01 - Consistent Monthly Payments
Because the interest rate never changes, your principal and interest payment remains the same throughout the loan term. This helps make budgeting simple and predictable.
02 - Protection From Rising Interest Rates
Once your rate is locked in, increases in market interest rates will not affect your loan. Your payment stays exactly the same regardless of economic changes.
03 - Long-Term Financial Planning
Stable mortgage payments allow homeowners to plan for the future with greater confidence, making it easier to manage expenses and savings goals.
04 - Simple and Easy to Understand
Fixed-rate loans are straightforward and transparent. You know exactly what your payment will be and how long it will take to pay off the loan.
How The First-Time Home Buying Process Works
The process of buying your first home has a lot of moving parts, but it follows a logical sequence. Here's a simplified look at how it typically unfolds:
Step 1 - Get Pre-Approved: Before you start touring homes, it's important to understand how much you can borrow. Pre-approval involves a review of your income, credit, assets, and debts. It gives you a clear budget and shows sellers you're a serious buyer.
Step 2 - Find Your Home: With a pre-approval in hand, you work with a real estate agent to search for homes within your budget. Many agents require pre-approval before they'll begin the search process.
Step 3 - Make An Offer: When you find a home you love, your agent helps you submit an offer. If accepted, you'll enter into a purchase contract and the formal loan process begins.
Step 4 - Loan Processing and Underwriting: Your lender collects documentation to verify your financial information. An appraiser evaluates the home's value. Your file goes through underwriting, where a final lending decision is made.
Step 5 - Close On Your Home: Once your loan is approved, you'll review and sign your closing documents, pay any remaining closing costs, and receive the keys to your new home.
The timeline from pre-approval to closing varies, but most purchases close within 30 to 45 days of an accepted offer. Your loan professional will guide you through every step.
The Benefits of Working With A Mortgage Professional Early
Many first-time buyers wait until they've found a home to talk to a lender. That's one of the most common (and costly) mistakes in the process.
Connecting with a mortgage professional early gives you a real advantage.
- Access to Larger Loan Amounts
Understanding your actual purchasing power before you tour homes keeps your expectations grounded and your search focused. You'll avoid falling in love with a home that's out of reach, and you'll know exactly what's realistic. - Strengthen Your Offer
In competitive markets like California, pre-approval can be the difference between your offer being accepted and getting passed over. Sellers and agents take pre-approved buyers more seriously. - Time To Address Credit Or Financial Issues
If your credit score or debt-to-income ratio needs work before you qualify, finding out early gives you time to make improvements. A few months of preparation can meaningfully expand your options. - Explore All Available Programs
First-time buyer programs, down payment assistance, and specialty loan options aren't always advertised. Working with a knowledgeable loan professional ensures you don't miss programs that could save you thousands. - Reduce Stress Throughout The Process
Having a trusted professional in your corner from the start means fewer surprises and a smoother experience from application to closing.
A fixed-rate mortgage offers several advantages for homebuyers who want financial stability and long-term predictability.
01 - Consistent Monthly Payments
Because the interest rate never changes, your principal and interest payment remains the same throughout the loan term. This helps make budgeting simple and predictable.
02 - Protection From Rising Interest Rates
Once your rate is locked in, increases in market interest rates will not affect your loan. Your payment stays exactly the same regardless of economic changes.
03 - Long-Term Financial Planning
Stable mortgage payments allow homeowners to plan for the future with greater confidence, making it easier to manage expenses and savings goals.
04 - Simple and Easy to Understand
Fixed-rate loans are straightforward and transparent. You know exactly what your payment will be and how long it will take to pay off the loan.
Common First Time Home Buyer Concerns
It's completely normal to have questions and hesitations before buying your first home. Here are some of the most common concerns we hear, and what you should know about each one.
"I don't have enough money for a down payment"
Many first-time buyers believe they need 20% down to buy a home. That's a common misconception. Depending on the loan program, you may qualify with as little as 3% to 3.5% down, or even nothing down if you're eligible for a VA or USDA loan. Down payment assistance programs can also help bridge the gap. Don't let assumptions about upfront costs stop you from exploring your options.
"My credit score isn't good enough"
Credit requirements vary significantly by loan program. FHA loans are designed with more flexible credit guidelines than conventional loans, and other programs have their own qualification standards. Even if your credit isn't where you'd like it to be right now, it may not be the barrier you think it is. And if it is, we can help you understand what steps to take to get there.
"I'm not sure I can afford the monthly payment"
Monthly mortgage payments depend on your loan amount, interest rate, loan term, and other factors like property taxes and insurance. The best way to get a realistic picture is to run the numbers with an actual loan professional — not just an online calculator. We'll help you understand what your payment would look like based on real scenarios, not estimates.
"I don't understand the pre-approval process"
Pre-approval is simpler than it sounds. You'll provide basic financial information — income, assets, employment history, and permission to pull your credit — and your loan professional will review your profile and give you a clear picture of what you can borrow. It typically takes a few days and puts you in a much stronger position to act when you find the right home.
"There's too much I don't know"
That's exactly what we're here for. You don't need to understand every detail of the mortgage process before reaching out. Our job is to educate you, walk you through your options, and make sure you feel confident at every step.
Financing Options For First Time Buyers
One of the most important decisions you'll make is choosing the right loan. There's no single "best" mortgage for first-time buyers — the right fit depends on your credit, savings, income, and the type of home you're buying.
Here are the most common loan options available to first-time buyers:
Conventional loans are not backed by a government agency and are offered through private lenders. They can be a strong fit for buyers with solid credit and at least 3% to 5% available for a down payment. Private mortgage insurance (PMI) is typically required when putting less than 20% down, but can be removed once sufficient equity is built.
Backed by the Federal Housing Administration, FHA loans are one of the most popular options for first-time buyers. They offer down payments as low as 3.5% for eligible borrowers and are more accessible for buyers with lower credit scores or limited savings. Mortgage insurance is required for the life of the loan in most cases.
If you or your spouse have served in the U.S. military, you may be eligible for a VA loan — one of the most powerful home financing programs available. VA loans require no down payment, no private mortgage insurance, and offer competitive interest rates. Eligibility is based on your service history.
If you're purchasing in a qualifying rural or suburban area, a USDA loan may allow you to buy with no down payment. These loans are designed for low-to-moderate income buyers in eligible locations and offer competitive rates with lower ongoing costs than many other low-down-payment programs.
Down Payment Assistance Programs:
Many first-time buyers don't realize that down payment assistance is available through state, county, and local programs. These programs can provide grants, forgivable loans, or deferred-payment assistance that reduces or eliminates the upfront cost of buying. Eligibility varies by program, location, and income level. Your loan professional can help identify which programs may be available to you.
Who Is This For?
This page, and our support for first-time buyers, is designed for people at every stage of their home-buying journey.
You may be in the right place if:
- You're renting and ready to stop paying someone else's mortgage
- You've started thinking about buying but don't know where to begin
- You're not sure how much home you can afford
- You're concerned about your credit score or savings
- You've heard about first-time buyer programs but don't know which ones apply to you
- You want a knowledgeable, straightforward partner to guide you through the process
- You've been told you're not ready — and want a second opinion
Whether you're ready to apply today or just starting to explore the idea, we're happy to have a conversation with no pressure and no obligation.
You don't have to figure this out on your own. Our team works with first-time buyers across California every day — answering questions, running numbers, and helping people find the path to homeownership that actually fits their situation.
The best first step you can take is a simple conversation. We'll listen to your goals, walk you through your options, and help you understand exactly where you stand.
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