Buying your first home is one of the most exciting financial decisions you’ll ever make — and one of the most overwhelming if you don’t have the right team in your corner. At First Commerce Financial, we’ve helped thousands of first-time buyers navigate the mortgage process with confidence across Michigan, Arizona, Florida, and Texas.

We’ll walk you through your loan options, explain the process in plain English, get you pre-approved, and make sure you know exactly what you’re paying — with no junk fees and no surprises at closing.

Where Do You Start as a First-Time Homebuyer?

The single most important first step is getting pre-approved before you start shopping for homes. Here’s why:

• You’ll know exactly what price range you can afford — so you don’t fall in love with homes outside your budget
• Sellers and real estate agents take you seriously — a pre-approval letter shows you’re a qualified, ready buyer
• In competitive markets like Phoenix, Tampa, and Dallas, you can’t make a competitive offer without one
• You’ll know your exact rate and payment before you commit to anything

Getting pre-approved with us is fast, free, and doesn’t affect your credit score. We do a soft credit pull initially and only move to a hard pull when you’re ready to formally apply.

Best Loan Programs for First-Time Homebuyers

Conventional Loan — 3% Down

Fannie Mae’s HomeReady and Freddie Mac’s Home Possible programs allow first-time buyers to purchase with as little as 3% down. These are conventional loans — not government-backed — which means PMI drops off once you reach 20% equity. A great option for buyers with solid credit (620+) and some savings.

FHA Loan — 3.5% Down

The FHA loan is one of the most popular first-time buyer programs for a reason. With just 3.5% down and flexible credit requirements starting at 580, it opens the door for buyers who may not qualify for a conventional loan. The trade-off is mortgage insurance that stays for the life of the loan if you put less than 10% down — but for many buyers it’s the right path to get into a home.

VA Loan — 0% Down

If you’ve served in the military, this is almost always the best loan available to you. Zero down payment, no PMI, and competitive rates. If you’re a first-time buyer and a veteran, start here. We’ll verify your eligibility and walk you through the process.

USDA Loan — 0% Down

For buyers purchasing in eligible rural and suburban areas, a USDA loan offers zero down payment with competitive rates. Many people are surprised to find that areas relatively close to major cities qualify. We’ll check any address for USDA eligibility instantly.

How Much Do You Need to Buy a Home?

This is the question we get most from first-time buyers. Here’s the honest breakdown:

Down Payment

• As low as 0% with VA or USDA loans
• 3% with certain conventional programs
• 5% with FHA
• Down payment can come from savings, a gift from family, or a down payment assistance program

Closing Costs

Closing costs typically run 2-3% of the loan amount and cover things like title insurance, appraisal, lender fees, and prepaid items. These are separate from your down payment. Some of these costs can be negotiated with the seller or rolled into the loan in certain situations.

Important: unlike many lenders, we don’t charge junk fees. Your closing costs will be real costs — appraisal, title, taxes, prepaid items — not made-up charges that pad our margin.

Reserves

Most loan programs want to see at least 2 months of mortgage payments in savings after closing. Some programs require more. We’ll tell you the exact reserve requirement for your loan type upfront.

The First-Time Homebuyer Process — Step by Step

• Step 1: Get pre-approved — we pull your credit, review your income and assets, and issue a pre-approval letter
• Step 2: Shop for homes — with your pre-approval in hand, you know exactly what you can afford and can make offers with confidence
• Step 3: Make an offer — your real estate agent submits an offer; your pre-approval gives it weight
• Step 4: Under contract — once your offer is accepted, we order the appraisal and begin processing your loan
• Step 5: Underwriting — the lender reviews all your documentation and issues a loan decision
• Step 6: Clear to close — all conditions are satisfied and your closing is scheduled
• Step 7: Closing — you sign the final documents, pay your closing costs and down payment, and get your keys

Most purchases go from pre-approval to closing in 30-45 days. We’ll keep you informed at every step so there are no surprises.

Common First-Time Homebuyer Mistakes to Avoid

• Making large purchases or opening new credit accounts between pre-approval and closing — this can change your debt-to-income ratio and affect your loan
• Changing jobs before closing — lenders verify employment right before closing; a job change can delay or derail your loan
• Not getting pre-approved before shopping — without a pre-approval you’re guessing on your budget and can’t make competitive offers
• Focusing only on the purchase price and ignoring ongoing costs — property taxes, insurance, HOA fees, and maintenance all factor into your real monthly cost
• Not comparing lenders — going with the first lender you find often means paying more. We shop wholesale lenders so you don’t have to

First-Time Homebuyer Programs by State

Michigan

Michigan State Housing Development Authority (MSHDA) offers down payment assistance programs for first-time buyers. We’ll walk you through what’s available and whether you qualify.

Florida

Florida Housing Finance Corporation offers several first-time buyer programs including down payment assistance and below-market rate loans. We work with these programs regularly.

Arizona

Arizona has several programs through the Arizona Department of Housing and Home Plus program that provide down payment assistance for qualifying first-time buyers.

Texas

Texas State Affordable Housing Corporation (TSAHC) and Texas Department of Housing and Community Affairs (TDHCA) both offer first-time buyer programs with down payment assistance. We’ll identify which programs you qualify for.

Frequently Asked Questions

What credit score do I need to buy my first home?

It depends on the loan type. Conventional loans require 620+, FHA starts at 580, and VA/USDA are more flexible. If your score is below those thresholds, we’ll tell you exactly what steps to take to get there — and how long it will realistically take.

Can I buy a home if I have student loans?

Yes. Student loan payments factor into your debt-to-income ratio, but they don’t disqualify you. We’ll calculate your DTI with your student loans included and show you exactly what purchase price you can qualify for.

How long does it take to get pre-approved?

In most cases, same day or next business day. We move fast because we know that in competitive markets, timing matters.

Do I need a real estate agent?

We strongly recommend working with a buyer’s agent, especially as a first-time buyer. A good agent represents your interests, helps you navigate negotiations, and doesn’t cost you anything — the seller pays the commission. If you need a referral, ask us — we work with great agents across all four states we serve.

What if I don’t have enough for a down payment?

You have more options than you think. VA and USDA loans require zero down. Conventional and FHA programs start at 3-3.5%. Down payment assistance programs exist in all four states we serve. And down payment gifts from family are allowed on most loan types. Talk to us before you assume you can’t afford to buy.

Ready to Buy Your First Home?

The best thing you can do right now is start the conversation. We’ll tell you exactly what you qualify for, what your payment will be, and what it will cost — with no pressure and no obligation. Thousands of first-time buyers have trusted Kirk and Ken to guide them through this process. We’d love to help you too.

Licensed in Michigan, Arizona, Florida, and Texas.

📞 Call us at (248) 459-5511

✅ Or get pre-approved online — it’s free and takes just a few minutes.