At some point, most Americans reach a stage where they start thinking about transitioning from renting to owning a home. Maybe rising rental prices are wearing you down, perhaps you’ve had enough of unresponsive landlords, or you simply want the freedom to customize your living space exactly the way you envision it. Whatever the reason, you’re ready to buy your first home.
Deciding to begin the journey is the easy part. The real challenge lies in understanding the many variables involved and asking the right questions. That’s why we’ve gathered some foundational tips for first-time buyers, drawing from Navy Federal’s decades of experience supporting service members and their families as they move into homes of their own.
What’s my credit score?
Think of your credit score as a snapshot of how dependable you are with money. Like a financial report card. Lenders rely on this number to gauge how likely you are to repay a mortgage. The higher your score, the more confident a lender feels, which translates into a better interest rate for you and less total interest paid over the life of your loan.
If your score isn’t where you’d like it to be, don’t stress. There are plenty of steps you can take to bring it back into a competitive range. A few points on your credit score might not seem like much, but across a 30-year fixed mortgage, even small differences can add up to thousands of dollars.
How much house can I afford?
Few things are more stressful than purchasing your dream home only to realize after a few months that your monthly expenses exceed your income.
The best way to avoid this is to create a realistic budget before you start shopping. But anyone who’s ever tracked expenses knows that staying on budget is easier said than done. Small, everyday purchases add up quickly. For example, that $7 coffee every workday? That’s around $140 a month. You don’t have to give it up, but you do need to account for it. One of the biggest budgeting mistakes is overlooking these routine expenses. Honesty is key: if you spend it regularly, track it.
Securing a competitive mortgage rate through Navy Federal Credit Union is another important part of accurate budgeting. Beyond the price of the home, you’ll also need to understand typical utility costs in your area, property taxes, HOA fees (if there are any), and miscellaneous homeowner expenses that renters don’t usually deal with.
Once your credit score is solid and your budget feels grounded in reality, it’s time to explore loan options. Navy Federal’s mortgage calculators make it easy to estimate monthly payments, closing costs, income requirements, down payments, and more.
After identifying a loan that fits your budget, getting preapproved will give you a clear sense of your true purchasing power. When you get a Navy Federal verified preapproval you can use their Lock & Shop1 benefit that offers extra peace of mind by locking in your rate with time to shop for a home and close, and if rates drop, you can request a lower rate up to two times before your lock expires. With NFCU’s digital application through HomeSquad, you also get step-by-step support, a dedicated team, and a personal loan advisor guiding you through the entire mortgage process.
How do I find the house I want?
The second-best part of buying a home (after moving in) is the actual house hunting. Navy Federal simplifies this part too with its RealtyPlus program.
Even if you know generally what you want in a home, searching the market can feel overwhelming. And with so many real estate agents out there, finding someone responsive, knowledgeable, and genuinely invested in your needs can be just as challenging as finding the right property. That’s where RealtyPlus comes in, where you can browse profiles and choose from top-performing real estate agents in your area.
You’ll also be paired with a RealtyPlus Coordinator who helps manage the process, keeps you informed, and ensures things move forward smoothly and efficiently.
As a bonus, if you purchase your home through a RealtyPlus agent, you could receive up to $9,000 cash back1 after closing — depending on the price of the home. It’s a fantastic perk on top of expert guidance.
Your new home
Hands down, the best moment in the homebuying journey is the one where you finish signing the last document, receive your keys, and walk into your new home for the very first time. It’s a once-in-a-lifetime moment, and one worth savoring. From that point on, the possibilities are endless. Your only limit is how far your imagination takes you.
This article was sponsored by Navy Federal Credit Union. Navy Federal Credit Union is federally insured by NCUA.
1 The Lock and Shop option is available for purchase loans under the Verified Pre-Approval Loan (VPAL) program. It allows you to lock the rate while shopping for a home for a 0.125% increase to the interest rate. The lock is valid for 60 days to secure a ratified contract plus 60 more days for Navy Federal to process and close the loan (120-day lock commitment). After a contract is secured and rates improve, members are eligible for a one-time rate reduction up to 0.25% at no extra cost. If the VPAL expires or no contract is ratified within the first 60 days, whichever happens first, the lock is void and the loan reverts to float status, subject to standard rate lock policies. Not eligible for Guaranteed Rate Match.
2 This program is only available for individual home purchases and sales in the contiguous U.S., Alaska, and Hawaii, excluding Iowa and employer-sponsored relocations. Financing through Navy Federal is not required to receive program benefits. The cash back is only available with the purchase or sale of your home through the use of a program-referred and -approved real estate agent, and is offered in most states, with the exception of Iowa, Alaska, and Oklahoma, and is not available in certain transactions with restricted agent commissions (including many new constructions, For Sale by Owner, or For Sale by iBuyer transactions, or where a minimum transaction side commission is not paid). Your agent can confirm which transactions are eligible. Cash-back amount depends on property value. Obtaining the full $9,000 requires a $3 million or greater transaction. Calculate your amount at navyfederalrealtyplus.com. One cash-back offer per property with no limit on the number of times you may use the program. In some states, a gift card or commission credit at closing may replace cash back.
In Kansas and Tennessee, a Mastercard® MAX gift card is provided with preloaded points and ready for use at specified retail establishments after closing. A commission reduction may be available in Mississippi, New Jersey, and Oregon instead of cash back. All real estate commissions are negotiable, and real estate broker fees apply. This program is offered, in part, by Anywhere Leads Inc., which may receive a co-operative brokerage fee as a result of a referral to any affiliated real estate companies, including Better Homes and Gardens® Real Estate, Coldwell Banker®, Century 21®, ERA® Real Estate, and Corcoran. Please check with the RealtyPlus program coordinator for full details, as program restrictions, terms, and conditions apply and are subject to change at any time without notice. This is an advertisement and not a solicitation for agent representation if your property is currently listed with an agent. Anywhere Leads Inc., 175 Park Avenue, Madison, NJ 07940. Licensed broker in the state of Texas. Broker license #9009191.