Home Buying Guide
Buying a Home Doesn't Have to Feel Like a Tax Audit
A friendly, no-pressure walkthrough of what to expect, when to expect it, and how OnPoint makes the mortgage part the easy part. Whether you're a first-timer or your fifth go, this is your roadmap.
21-45 daysAverage close time
24 hoursPre-approval turnaround
20+ lendersCompeting for your loan
9 statesWhere we're licensed
The 7-Step Path to Your Front Door
Most home purchases take 30 to 60 days from offer to keys. Here's what happens at each step. Skip ahead to whichever one you're stuck on.
1
Am I Ready? (a real conversation with yourself)
Owning is a lifestyle change as much as a financial one. The honest checklist: are you planning to stay put 3+ years, do you have a stable income, and do you have any savings or are willing to look at low-down programs? If yes to all three, you're ready to start.
What you'll do
- Check your credit (free at annualcreditreport.com)
- Pull together 60 days of pay stubs and 2 years of W-2s
- Think about your "must have" vs "nice to have"
- Ballpark a budget you're actually comfortable with
What OnPoint does
- Free 15-minute call to talk through goals (no credit pull)
- Tell you straight up what's realistic in your market
- Identify low-down programs you might qualify for
- No pressure, no obligation
Pro tip: You don't need perfect credit. Many of our borrowers close with scores in the 620-680 range. FHA goes down to 580. Don't disqualify yourself before talking to us.
2
Get Pre-Approved (this is the actual power move)
A pre-approval letter tells sellers you're a real buyer, not a tire-kicker. In hot markets, your offer won't even be looked at without one. Most banks take 3-5 business days. OnPoint does it in 24 hours because we work with 20+ lenders and know who fits your file.
What you'll do
- Send us your pay stubs, W-2s, and bank statements
- Authorize a soft credit check
- Talk through your budget and goals
- Receive your pre-approval letter (PDF, ready to share)
What OnPoint does
- Match your file to the lender most likely to approve and price it best
- Calculate your real buying power (not the inflated "qualified" number)
- Identify any issues NOW vs. mid-offer
- Write your pre-approval at a competitive number
Pro tip: Get pre-approved BEFORE you tour houses. Touring without pre-approval is like grocery shopping without checking your wallet first — it just leads to disappointment.
3
Pick a Buyer's Agent (the seller pays them, not you)
A buyer's agent represents you in the transaction. They know neighborhoods, pricing, and the negotiation game. In most deals their commission is paid by the seller, so this is essentially a free expert in your corner.
What you'll do
- Ask friends and family for referrals
- Interview 2-3 agents (vibe-check matters)
- Check their recent transactions in your area
- Sign a buyer's agency agreement when you find one you trust
What OnPoint does
- Refer you to local agents we've closed with successfully
- Stay in lock-step with your agent through the deal
- Provide updated pre-approval letters within hours when you make an offer
- Coordinate so you're not the middleman
Pro tip: The "best" agent isn't necessarily the one with the biggest billboard. It's the one who returns your texts fast and tells you the truth about a house's flaws.
4
House Hunting (the fun part — mostly)
You'll tour homes, save listings, fall in love with one that has cracked foundations, and learn what you actually want vs. what you thought you wanted. This is the longest part of the process and the part most people remember as "buying a home."
What you'll do
- Tour homes with your agent (online listings lie, in person reveals)
- Refine your criteria as you learn what matters
- Watch your local market — price changes, days on market
- Be patient. The right house shows up.
What OnPoint does
- Update your pre-approval as rates move (we'll re-run numbers anytime)
- Quick payment estimates on any specific house you're considering
- Available for evening/weekend questions, because that's when you tour
Pro tip: Tour at different times of day. A peaceful street at 11am can be a school-pickup nightmare at 3pm. Drive the commute. Listen for trains.
5
Make an Offer (your heart will pound, that's normal)
You found it. Time to write the offer. Your agent drafts it, you sign, it goes to the seller. They accept, counter, or reject. Sometimes there's a multi-offer situation and you negotiate fast. We refresh your pre-approval letter to match the offer amount within hours.
What you'll do
- Decide your offer amount with your agent's guidance
- Include contingencies (financing, inspection, appraisal)
- Submit earnest money (typically 1-3% of purchase price, refundable in most contingencies)
- Wait. Then negotiate. Then sign.
What OnPoint does
- Refresh your pre-approval letter for the exact offer amount, same day
- Run the payment scenarios so you know exactly what each price point means monthly
- Lock your rate as soon as the offer is accepted (or float if the market is dropping)
Watch out: Don't waive contingencies you don't understand. Financing and inspection contingencies are there to protect your earnest money. Talk to your agent and us before removing any.
6
Underwriting and Inspection (we drive, you ride)
This is the back-half of the process and the part where most deals get messy at other lenders. The underwriter verifies everything — income, assets, the property, the title. The inspector checks the house for issues. The appraiser confirms the value. You'll get a few document requests and occasional updates from us; otherwise, you wait.
What you'll do
- Respond fast to document requests (we'll text/email)
- Show up for the inspection if you want to (recommended)
- Get homeowner's insurance lined up (we'll guide you)
- DO NOT open new credit cards, buy a car, change jobs, or move money around. Seriously.
What OnPoint does
- Manage every document, deadline, and conversation with the lender
- Order the appraisal and follow up daily
- Resolve any underwriting conditions before they become deal-killers
- Update you in plain English when things move
Don't sabotage your own deal: Buying a couch on a new credit card during underwriting has killed real deals. Don't do anything to your credit or bank accounts until after closing.
7
Closing Day (you get the keys, we get a thank-you note)
You'll sit at a table, sign approximately 47 documents (some have many pages), wire your down payment and closing costs, and walk out with the keys. It's anticlimactic and one of the best days of your life at the same time.
What you'll do
- Wire your closing funds the day before (we'll send instructions)
- Bring a government ID
- Sign everything the closer puts in front of you (we've already reviewed it)
- Take the keys, maybe a photo, definitely deep breath
What OnPoint does
- Review your Closing Disclosure 3 days before to catch any errors
- Confirm exact wire amount so there are no surprises
- Be reachable closing day for any last-second questions
- Check in after closing — we want to be your broker for life, not one transaction
Pro tip: Schedule closing for late morning. Banks process wires faster, and you'll have the afternoon to celebrate or unpack. Avoid Friday closings if possible — if anything needs fixing post-close, you'll wait the whole weekend.
First-Time Buyer? Read This Before You Worry About Anything Else.
The biggest myth is that you need 20% down. You don't. There are five separate paths to buy with very little out of pocket, and you probably qualify for at least one of them.
- FHA loans: 3.5% down with a 580+ credit score
- Conventional 97: 3% down for first-time buyers
- VA loans: 0% down for eligible veterans and active duty
- USDA loans: 0% down in eligible rural and suburban areas
- Down Payment Assistance (DPA): state and county programs that can cover most or all of your down payment
What It Actually Costs to Buy a $500,000 Home
No gotchas, no fine print. Here's a real breakdown of out-of-pocket costs for a $500,000 home with 10% down on a Conventional loan. Your numbers will vary, but this is the shape of it.
| Cost | What It Is | Typical Amount |
|---|---|---|
| Down Payment | Your equity at closing (3-20% of price) | $50,000 |
| Closing Costs | Lender fees, title, escrow, taxes prepaid | $10,000 - $15,000 |
| Inspection | Independent inspector you hire | $400 - $700 |
| Appraisal | Lender-ordered valuation (we often credit this) | $500 - $800 |
| First Year Insurance | Paid at closing | $1,200 - $2,000 |
| Reserves | Extra savings lender wants to see (1-2 months) | $3,000 - $6,000 |
| Total Out of Pocket | To get the keys | ~$65,000 - $75,000 |
Home Buying Myths That Cost People Years
Stuff your parents told you that was true 30 years ago but isn't anymore.
Myth
"You need 20% down."
You don't. FHA goes to 3.5%, Conventional to 3%, VA and USDA to 0%. The "20%" rule only matters if you want to skip PMI — and PMI on most loans drops off automatically.
Truth
Average first-time buyer puts 6-7% down.
Per the National Association of Realtors, the median down payment for first-time buyers is 6-7%. Waiting to save 20% costs you years and tens of thousands in rent.
Myth
"You need an 800 credit score."
FHA goes down to 580. Conventional starts at 620. VA has no official minimum (lenders set theirs around 580). Your score affects rate, not whether you can buy.
Truth
Mortgage rates change daily and we shop them daily.
Going to one bank locks you to one rate. We get fresh quotes from 20+ wholesale lenders, so we know who's pricing aggressively on YOUR file this week.
Myth
"Renting is throwing money away."
It's not, especially if you're moving in less than 3 years. Owning has hidden costs (maintenance, property tax, repairs). Buy when it makes sense for your life, not when someone tells you to.
Truth
The right time to buy is when you're ready.
Stable job, plan to stay 3+ years, can afford payment plus surprise repairs. That's the test. Markets time themselves. You time your life.
6 Mistakes That Kill First-Time Buyer Deals
Real things we've seen real buyers do that wrecked otherwise-good transactions.
Mistake #1
Shopping homes before pre-approval
You'll fall in love with a house you can't afford, or lose a house you can because the seller picked the pre-approved buyer.
Mistake #2
Opening new credit during underwriting
That 0% APR offer on a couch could change your DTI ratio enough to disqualify you. Don't touch your credit until after closing.
Mistake #3
Changing jobs mid-process
Lenders verify employment the week of closing. A new job, even a better one, can require restarting the entire underwriting clock.
Mistake #4
Skipping the inspection
It's $500 to find out about a $30,000 foundation problem. Waiving inspection to win a multi-offer war is a financial Russian roulette.
Mistake #5
Large unexplained deposits
Underwriters trace every dollar. A $5,000 deposit from "a friend" needs a paper trail. Cash deposits to your bank can disqualify you.
Mistake #6
Going to one bank only
Banks sell one set of products. We compare 20+ lenders. The rate spread on the same borrower across lenders can be 0.5% — that's $30,000+ over 30 years.
Why Hire a Mortgage Broker (vs. Walking Into a Bank)
A bank loan officer sells you ONE bank's products. We work for YOU and shop your file across 20+ wholesale lenders, then negotiate on your behalf.
Going to your bank
- One set of loan products, one set of rates
- Loan officer is paid to sell THAT bank's loans
- If your file is borderline, they decline. No backup plan.
- Pre-approval typically takes 3-5 business days
- Rates can be retail (higher) vs. wholesale
- One underwriter, one set of rules
Going through OnPoint
- 20+ wholesale lenders quoting your same file
- We get paid the same regardless of which lender funds — so we pick the best one for YOU
- If one lender hesitates, we have 19 others to try
- Pre-approval in 24 hours
- Wholesale rates and pricing tiers retail banks can't access
- One point of contact (your loan officer) handling all of it
First-Time Buyer FAQ
The questions everyone has but feels weird asking. Honest answers.
How much do I actually need to save before I start?
For a $400,000 home, plan on $25,000-$40,000 total out-of-pocket if you're using a low-down program (FHA, Conv 97). That covers down payment, closing costs, inspection, appraisal, first-year insurance, and a couple months of reserves. If you don't have that yet but you're close, we can talk you through DPA and seller-concession strategies.
Will getting pre-approved hurt my credit?
The initial conversation and rate quote is a soft pull — no impact. The formal pre-approval requires a hard credit pull, which can ding your score 5-10 points temporarily. Multiple mortgage inquiries within 45 days count as ONE inquiry for scoring purposes, so shop around without worry.
I have student loans. Can I still buy a house?
Yes, in most cases. Student loans count toward your debt-to-income ratio, but they don't disqualify you. Income-driven repayment plans help. Don't let student loans stop you from at least talking to a broker — the math is rarely as bad as you think.
What's the minimum credit score I need?
580 for FHA, 620 for Conventional, no official minimum for VA (most lenders want 580+). Below 580, we can usually find a non-QM program or work on credit repair first. We don't make you feel bad about a low score — we just price the file accordingly.
How long does the whole process take from start to keys?
Pre-approval: 24 hours. House hunting: 4-12 weeks depending on market. Offer to closing: 21-45 days. Total: anywhere from 2 to 5 months. Quicker is possible in calmer markets and pickier searches.
Do I need to be a U.S. citizen?
No. Permanent residents and many visa holders qualify for the same loan programs as citizens. Foreign nationals can qualify through Non-QM programs. We're licensed in 9 states and have placed loans for borrowers in dozens of immigration statuses.
Can I buy a house if I'm self-employed?
Yes. Self-employed borrowers traditionally need 2 years of tax returns. If your returns don't show enough qualifying income (write-offs!), we have bank statement loans, P&L loans, and asset-depletion loans that look at your cash flow differently. Many self-employed borrowers qualify for MORE through these programs than through traditional underwriting.
What if my offer gets accepted but rates go up?
We lock your rate as soon as your offer is accepted (or float strategically if rates are dropping). A lock typically lasts 30-60 days. If your closing gets extended, lock extensions are usually free or low cost. You're not at the mercy of the market once locked.
How much does using OnPoint as my broker cost me?
In most loans, our compensation is paid by the lender, not added to your costs. You see the same closing fees and rate quotes you'd see anywhere — you just get the benefit of having 20+ lenders shopped instead of one. We disclose our compensation on your Loan Estimate, and on most files it's already baked into the wholesale rate.
You Have a Question About Buying a Home. We Have an Answer.
No script. No high-pressure sales. Just an honest conversation with a 24-year mortgage broker who's seen every scenario. Pre-approval in 24 hours, free, no obligation, no impact on your credit at the first call.
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