Buying your first home, one clear step at a time.

How much you really need down

Less than most people expect. Qualifying buyers have low down payment options on a conventional loan and on an FHA loan. VA loans for eligible veterans and service members and USDA loans for eligible rural addresses can require little or no money down. On top of the down payment you will need closing costs and prepaid items; a seller credit, a family gift, or state assistance can cover part of them.

What a pre-approval checks

Four things: credit (your scores and payment history), income (what you earn and how steady it is), assets (what you have for the down payment, closing costs and reserves), and debts (your monthly obligations compared with your income). A loan officer reviews them, tells you which programs fit, and puts a figure in writing. That letter is what a listing agent looks for with your offer.

Down payment help in Pennsylvania and New Jersey

Both states run housing agencies with programs for first-time buyers, and Stellar Mortgage is a participating lender for both. In Pennsylvania, see PHFA programs. In New Jersey, see NJHMFA programs. Each agency sets its own income and purchase price limits and changes them from time to time, so we confirm the current figures on your file instead of quoting them here.

From first call to keys

1. Pre-approval. Answer a few questions, then send the documents on our checklist. Most buyers have a letter within one to two business days after we have them.
2. House hunting and offer. Your agent writes the offer with your letter attached. We can issue a letter for the exact offer amount.
3. Under contract. We order the appraisal, the title company or attorney starts the title work, and your file goes to underwriting.
4. Clear to close. You receive the Closing Disclosure at least three business days before closing, sign, and get the keys.

Most purchases close 30 to 45 days after the offer is accepted. In Pennsylvania a title company usually handles the closing; in New Jersey the contract goes through attorney review first.

What to gather

• Two most recent pay stubs
• W-2s for the last two years (and tax returns if you are self-employed)
• Two most recent statements for each bank account, all pages
• A photo ID

Please send documents through the secure application portal, never by regular email.

Questions first-time buyers ask

This page is general information, not a commitment to lend. All loans are subject to credit approval, underwriting and property eligibility. Program terms and availability change and vary by state.