First-Time Buyer? How to Find a Lender
November 4, 2026
As a first-time buyer, find a lender by getting pre-approved before you house-hunt, asking two or three lenders or brokers for same-day Loan Estimates, and checking that each one participates in any down payment assistance or first-time buyer program you plan to use. Verify every loan officer's license on NMLS Consumer Access, and choose on total cost, clear answers and how well they explain the process.
Start with programs, then lenders. Many state housing finance agencies and local governments run first-time buyer and down payment assistance programs, and most work only through a list of participating lenders. Look up your state housing finance agency's site, note the programs you might qualify for, and use its participating-lender list as your starting point. Some programs, along with certain conventional loan options, require a homebuyer education course before closing. HUD-approved housing counseling agencies offer education and one-on-one counseling, often free or low-cost, and they don't sell loans.
Timing and comparing. Get pre-approved before you make offers, since sellers and agents often expect a pre-approval letter. Rate shopping within a short window generally counts as one inquiry for credit scoring, so you can compare lenders without much credit impact. When you have Loan Estimates, compare the same loan type, loan amount and lock period. Look at the APR, the Section A origination charges, points or lender credits, and estimated cash to close. Ask how assistance funds show up on the Loan Estimate and whether the program adds fees or affects your rate.
Questions to ask and quick answers. Ask each lender: Which first-time buyer and assistance programs do you participate in? What credit, income and education requirements apply? How long does pre-approval take, and what documents do you need? Who will be my main contact, and how fast do you usually reply? What does the assistance require if I sell or refinance early? Do I need a big down payment? Not always; several loan programs allow a low down payment, and assistance can help with what's left. Should I use my real estate agent's recommended lender? You can, but compare at least one other offer. Is a broker or a bank better for first-time buyers? Either can work; a broker can compare several lenders, while a bank may suit you if it offers the program you need.
First-time buyers should look up assistance programs first, use the program's participating-lender list, get pre-approved early and compare same-day Loan Estimates on APR, Section A fees and cash to close. Verify NMLS licenses and lean on free HUD-approved counseling if you want a neutral guide. Sources: CFPB, Buying a House tools and Your Home Loan Toolkit (consumerfinance.gov); HUD housing counseling agency search (hud.gov); NMLS Consumer Access (nmlsconsumeraccess.org). General education only. LoFi Rate is an independent matching service, not a lender or mortgage broker. If you request a match, your information is shared with independent mortgage professionals licensed in your state.