first time home buyer rates and how to avoid costly missteps

For newcomers, first time home buyer rates can feel like a moving target. Lenders weigh your credit score, loan type, down payment, discount points, and daily markets. Note the difference between rate and APR; fees matter. Small shifts in debt-to-income, loan amount, and property type often nudge pricing.

What actually moves your rate

To shape a better offer, compare quotes on the same day and request a standardized Loan Estimate. Consider buying points only if the breakeven suits your timeline. Improve credit utilization, verify income early, and decide when to lock; longer locks usually cost more.

Common mistakes to avoid

1. Chasing monthly payment, not total loan cost.
2. Accepting lender credits that quietly raise rates.
3. Floating through volatility and missing a window.
4. Letting closing slip, extending the lock cost.
5. Ignoring PMI, HOA, and taxes in budgeting.

A simple rule: get three quotes, line up fees, and choose the fit for your timeline-not just the shiniest headline rate.