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First-Time Home Buyer Guide
Everything you need to know about buying your first home in Montgomery, AL — from getting pre-approved to picking up the keys.
Buying Your First Home Doesn't Have to Be Overwhelming
The home buying process has a lot of moving parts, but with the right guidance it's completely manageable. This guide walks you through every step so you know exactly what to expect — and how HQH Properties can help you find the right home at the right price.
The 8-Step Buying Process
01
Check Your Credit & Finances
Before you start browsing listings, pull your credit report and review your score. Most conventional loans require a score of 620 or higher, while FHA loans can go as low as 580. Pay down high-balance credit cards, avoid opening new accounts, and save for a down payment — typically 3–20% of the purchase price.
02
Get Pre-Approved for a Mortgage
A pre-approval letter shows sellers you're a serious buyer and tells you exactly how much you can borrow. You'll need to provide pay stubs, tax returns, bank statements, and ID. Our lending partners at AmeriFirst Bank specialize in first-time buyer programs including FHA and VA loans.
03
Define Your Must-Haves
Make a list of non-negotiables: number of bedrooms and bathrooms, school district, commute distance, garage, yard size. Separate your must-haves from your nice-to-haves. This keeps your search focused and helps your agent find the right matches faster.
04
Start Your Home Search
Work with a buyer's agent who knows the Montgomery market. HQH Properties has access to both MLS listings and off-market wholesale properties — giving you more options than a typical search. Tour homes with a critical eye: check for water stains, foundation cracks, and HVAC age.
05
Make an Offer
When you find the right home, your agent will help you craft a competitive offer based on comparable sales (comps). Your offer will include the purchase price, earnest money deposit (typically 1–2%), contingencies for inspection and financing, and a proposed closing date.
06
Schedule a Home Inspection
Never skip the inspection. A licensed inspector will evaluate the roof, foundation, electrical, plumbing, HVAC, and more. If issues are found, you can negotiate repairs, a price reduction, or credits at closing. Our partner inspectors provide detailed reports within 24 hours.
07
Secure Your Financing & Appraisal
Once your offer is accepted, your lender will order an appraisal to confirm the home's value matches the loan amount. You'll also finalize your loan type, interest rate, and terms. Lock your rate early to protect against market fluctuations.
08
Close on Your New Home
At closing you'll sign the final loan documents, pay closing costs (typically 2–5% of the loan), and receive the keys. Review the Closing Disclosure carefully before the appointment. Our title partners at Roper & Wilson ensure a smooth, secure closing every time.
Alabama First-Time Buyer Tips
Look Into AHFA Programs
The Alabama Housing Finance Authority (AHFA) offers down payment assistance and below-market interest rates for qualifying first-time buyers. Ask your lender about Step Up and Mortgage Credit Certificate programs.
Budget for Closing Costs
In Alabama, closing costs typically run 2–4% of the purchase price. This includes lender fees, title insurance, appraisal, and prepaid items like homeowner's insurance and property taxes.
Consider Wholesale Properties
HQH Properties specializes in wholesale real estate — properties sold below market value that are perfect for buyers willing to do light renovations. These deals move fast and can save you tens of thousands of dollars.
Don't Skip Title Insurance
Owner's title insurance protects you from any claims or disputes over ownership after closing. It's a one-time fee at closing and well worth the peace of mind.
Ready to Find Your First Home?
HQH Properties works with first-time buyers across Montgomery, AL. We'll walk you through every step — from your first showing to closing day.
Book a Free Consultation