Blog Post: A First-Time Homebuyer’s Guide for Couples Earning $80-$100K Annually

Introduction: Turning Dreams into Reality

Purchasing your first home is a major milestone, but it can feel daunting—especially when balancing affordability and aspiration. If you and your partner have a combined annual income of $80,000–$100,000, you’re not alone in wondering where to start. The good news is, with proper planning, this goal is within reach. Here’s a step-by-step strategy to help you navigate the journey toward homeownership.

Step 1: Define Your Budget

Start by determining how much home you can realistically afford. A general rule is that your monthly housing costs (mortgage, property taxes, and insurance) should not exceed 28%–30% of your gross monthly income.

• Example: With a combined income of $90,000, aim for housing costs under $2,250/month.

• Get Preapproved: Lenders can give you a clearer idea of your borrowing capacity.

💡 Pro Tip: Use online mortgage calculators to estimate how home prices translate into monthly payments.

Step 2: Save for Your Down Payment

Most lenders recommend a down payment of 20% to avoid private mortgage insurance (PMI), but many first-time buyers qualify for programs that allow lower down payments.

• FHA Loans: Require as little as 3.5% down.

• Conventional Loans: May allow down payments as low as 3%.

For a $400,000 home, a 3%–5% down payment equals $12,000–$20,000. Open a joint savings account and contribute monthly toward this goal.

💡 Pro Tip: Look into down payment assistance programs offered in your area.

Step 3: Improve Your Credit Score

Your credit score significantly impacts your mortgage rate.

• Aim for 700+: This will help secure better rates.

• Pay Down Debt: Focus on high-interest debt, like credit cards.

• Avoid New Debt: Don’t open new credit accounts or finance big purchases before applying for a mortgage.

💡 Pro Tip: Check your credit report for errors and correct them early.

Step 4: Research First-Time Buyer Programs

Many states and municipalities offer incentives to help first-time buyers.

• Low-Interest Loans: Some programs offer reduced interest rates.

• Tax Credits: Federal or state tax credits may be available.

• Grants: Certain programs provide funds for down payments and closing costs.

💡 Pro Tip: Visit HUD.gov to find resources specific to your area.

Step 5: Choose the Right Location

When deciding where to buy, balance affordability with lifestyle needs.

• Consider Commutes: Proximity to work can save time and money.

• Look at Growth Areas: Up-and-coming neighborhoods often offer better value.

• Research Schools: Even if you don’t have kids, strong school districts often lead to higher resale value.

💡 Pro Tip: Partner with a local real estate agent to identify promising neighborhoods.

Step 6: Get Preapproved for a Mortgage

Before house hunting, get preapproved for a mortgage. This shows sellers you’re a serious buyer and gives you a firm budget.

Step 7: Create a Wish List

Identify your “must-haves” and “nice-to-haves.” For example:

Must-Haves:

• Safe neighborhood

• Two bedrooms

• Garage

Nice-to-Haves:

• Backyard

• Updated kitchen

• Close to public transit

💡 Pro Tip: Be flexible! Focus on what you can’t easily change, like location or layout.

Step 8: Start House Hunting

With your budget and wish list in hand, start visiting homes. Use tools like Zillow or Realtor.com, but also rely on your agent’s expertise.

Step 9: Be Strategic with Offers

In a competitive market, make your offer stand out:

• Preapproval Letter: Attach it to your offer.

• Escalation Clauses: Agree to raise your offer incrementally if competing bids arise.

Step 10: Don’t Forget Closing Costs

Set aside 2%–5% of the home’s purchase price for closing costs. For a $400,000 home, this amounts to $8,000–$20,000.

Conclusion: Start Your Journey Today

Buying your first home is a team effort, especially when you’re purchasing with a partner. By budgeting wisely, improving your credit, and taking advantage of first-time buyer programs, you can turn your dream of homeownership into a reality. Start small, stay flexible, and remember—every step forward brings you closer to the keys to your new home.

💡 Ready to start your journey? Contact me to get started today!