A First-Time Homebuyer's Roadmap for Rhode Island

Buying your first home can feel like a maze of unfamiliar terms. Break it into steps and it becomes manageable. Here is the path most first-time buyers follow.

1. Start with your numbers

Look at your income, savings, debts and credit before you look at listings. Decide what monthly payment is comfortable, not just what a lender will approve, and remember to budget for property taxes, insurance, utilities and maintenance.

2. Get pre-approved

A pre-approval letter from a lender shows sellers you are serious and tells you what price range to search in. Talk to more than one lender and compare rates, fees and loan types.

3. Ask about assistance programs

State housing agencies such as RIHousing in Rhode Island, MassHousing in Massachusetts and CHFA in Connecticut have offered first-time buyer programs, including down payment help. Eligibility and terms change, so check current details with a participating lender.

4. Search, tour and make an offer

Make a short list of must-haves and nice-to-haves. When you find the right home, your agent will help you look at comparable sales and structure an offer, including price, deposit and contingencies.

5. Inspection, appraisal and legal review

• A home inspection checks the condition of the property and can be used to negotiate repairs or credits.
• Your lender will order an appraisal to confirm the value.
• In Rhode Island, an attorney typically handles the legal side of the closing, so line one up early.

6. Close and get your keys

Before closing you will do a final walk-through, review your closing figures and sign the paperwork. Then the keys are yours.

Every situation is different. If you are thinking about buying, we're happy to talk through your options, in English or Spanish, with no pressure. This article is general information, not legal or financial advice.