Buying your first home can be overwhelming — that’s normal. Every first-time buyer I have worked with started exactly where you are now: excited, a little nervous, and full of questions. We at HomeWise are specialists in explaining each step, giving you all the options so you can choose what fits your unique situation best. We walk you through each and every decision, making sure you understand clearly and feel comfortable before proceeding to the next step. Keep in mind that you have no obligation to move forward unless you feel comfortable.
Here’s the good news. The process is very familiar to us, and we make it easier than the internet makes it sound. We walk through it with you, and together we go slow enough to ensure clarity on every step of the way. Welcome to your own personal real estate sherpa, looking out for your interests the entire time.
Step 1 – Find Out Exactly What You Can Afford
Before you start shopping for a home, we will help you pick a great lender to get pre-approved. Not just pre-qualified. Pre-approved means your lender has already reviewed your income, debt, credit score, and all other finances, and has given you a Letter of Pre-Approval.
Sellers take pre-approved buyers seriously. In the Salem, Oregon market, nearly half of sellers have lowered their sale prices this year in 2026. A pre-approval letter makes your offer stand out — and gives you a good chance to pay less.
A 15-minute conversation with a lender gives you the two most important pieces of financial info: your shopping range (your top limit — how much you can borrow) and your monthly mortgage payment. When you decide how much you can comfortably pay monthly, you can zero in on the best-value home in your affordable range.
Lenders look at two numbers beyond your income. The first is your debt-to-income ratio (DTI) — add up your monthly housing payment, taxes, insurance, and other debts, then divide by your gross monthly income. Ideally you’re at 36% or less; 46% is the ceiling for most loans. The second is your credit score — the higher it is, the better your chances and your rate. At minimum, you want a 620. The good news: paying down credit cards and clearing up any collections can move both numbers faster than you’d think, and your lender will show you exactly where you stand.
Step 2 – Forget the 20% Down Payment Myth
This is the single most misunderstood rule about buying. It is not true for most loans out there. Two common loans are ZERO down payment loans: if you qualify, you might be able to get a VA loan or an FHA loan. Both have qualification rules, and no down payment is required. Other loans offer low down payments — some require as little as 3.5% down. Your lender will explain in full which ones you can consider and compare the pros and cons of several different loans to give you the best options.
The perk of putting 20% down is that it drops the need for private mortgage insurance (PMI). That is a trade-off, not a requirement. Every month you wait, saving up for a bigger down payment, you’re paying monthly rent instead of building equity. Equity is the difference between the home’s market value minus how much is owed on the home. As the mortgage gets paid down and the home value goes up, the more equity you have. Starting that process now earns you more than if you wait.
Step 3 – Budget for Closing Costs, Inspection & Earnest Money Deposit
First-time buyers often never see these expenses coming. These fees are not included in the loan.
The earnest money deposit is a small good-faith amount given to the title company to start the escrow process. It gets credited back to you at closing as part of what you pay toward the purchase. The title company takes care of all the debits and credits along the way. Earnest money shows the seller you’re serious — and if you back out without good cause, they keep it. The amount is negotiable, and your realtor will advise you on what serves you best.
The inspection is paid by the buyer and is a powerful negotiating tool. The inspection report is your property, and you can use it to point out potential repairs that need addressing. Most all repairs qualify to be negotiated. For example, you might ask the seller to replace the carpeting in the family room, and the seller can answer in three ways: they might say yes, they might say no, or they might counteroffer — say, offering to pay for half while you pay half, so you can choose the style and color and replace the carpet later. If they say no, you have the right to back out, get your earnest money back, and terminate the purchase. Your experienced realtor will help navigate these nuances to your preferences, lay out all your options, and you decide.
Closing costs happen at the end of the deal. Both the seller and buyer have closing costs. Buyers will see fees going to the lender, the title company, the county recording fee, prorated property tax for the month of escrow, and the bank’s appraisal. Here in Oregon, closing costs run roughly 2–5% of the purchase price, on top of the down payment. Your realtor will explain all of this in detail when that phase of the transaction arrives.
Keep in mind that some of these fees are negotiable. Sometimes a lender will help with the appraisal fee. Sometimes the seller can contribute to your closing costs. Sometimes a seller will negotiate buying your rate down instead of helping with closing costs. All of it will be explored to get you the best deal possible.
More good news: in today’s market — where buyers have more leverage than they have in years — sellers are increasingly willing to contribute to get their house sold.
One more thing worth knowing about: a survey. A survey confirms you actually own all the property you think you do — property lines, easements, and all. It doesn’t come up in every deal, but when it does, you’ll be glad you have it.
Step 4 – Get a Local Realtor Who Actually Answers Their Phone
Zillow shows you the houses. A great local realtor shows you the right homes — and saves you from the wrong ones.
Here’s what we do for our first-time buyers in Oregon at HomeWise:
- Honest pricing guidance. We will tell you when a house is overpriced, even if it costs us the sale. Either it is a fair win-win, or no deal. We always let you decide if you want to pay more or go discover your dream home elsewhere.
- Off-market and coming soon. We have connections to see homes before they hit the market and let you know first-hand. We can also ask around in the neighborhood you prefer in case anyone is considering moving — so a home becomes available to you before anyone else. Sometimes the best deals are gone before they hit the big websites. We go the extra mile for our first-time buyers.
- Negotiation. Anything is negotiable. Anything. If you want something and the seller agrees, you both sign a legally binding contract. We at HomeWise are not afraid to ask for ANYTHING you want included in the deal. Some buyers have asked for furniture, appliances, lighting, beautiful plants — one time, two bunnies! The buyers won the deal, and the kids were SO HAPPY. 😉
- Plain English. No jargon, no weirdly named processes. We make sure you understand every word in every document before you sign it. For ASL buyers, we work with a top certified interpreter of 45 years to communicate with you directly, in your language. No waiting for an interpreter, no confusion, no missing details, no misunderstandings on the biggest purchase of your life. We are Deaf-friendly and use full ASL. 🤟
Step 5 – The Salem & Willamette Valley Market Right Now (4th Quarter 2026)
- Homes are sitting longer than they have in years, so there’s less competition — giving you more negotiation control. You tell us what you desire; we go to bat for you.
- Nearly half of sellers have reduced their asking price. That was unheard of three years ago.
- Interest rates are still affordable. We tell our buyers: you can refinance a mortgage rate, but you can’t renegotiate a purchase price. Buy the right dream home now, then refinance when rates come down. First-time buyers have more leverage in Salem & the Willamette Valley right now than they’ve had in a long time. Waiting for “the perfect moment” usually just means paying more later.
Bonus Step – Closing Day: What Actually Happens
Before you get the keys, your new home goes through its final checkpoints: inspection, appraisal, and a title check to make sure the ownership history is clean. On closing day itself, you’ll sit down (in person or virtually) and sign the documents — some can even be signed digitally — and pay your buyer closing costs. Then the funds are distributed, the deed is recorded, and the keys are yours. That’s the moment all the paperwork was for.
Now it’s YOUR MOVE. You don’t need to have it all figured out before we talk. Most of my first-time buyers call me with nothing but questions about their unique situation. That is literally what we are here for.
Call, text, or FaceTime (503) 747-8232 for a short, zero-pressure conversation about where you are in the process and what comes next. If we’re not the right fit, so be it — we part ways with no stress. A good fit is important. Looking forward to meeting you.
Let’s go discover your first dream home.
— Koli Cutler, Realtor®, Principal Broker of HomeWise Real Estate at Realty ONE Group, Willamette Valley