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When my husband and I purchased our first home eight years ago, it wasn't a simple process. The paperwork, calculations and unforeseen obstacles seemed pretty overwhelming. By walking you through some of these obstacles, I hope to help you avoid them when buying your first home.

Estimate the Price of Home You Can Comfortably Afford

This doesn't refer to a preapproval amount from a bank. Don't think of your maximum preapproval amount as your target price. This could leave you with an uncomfortably high monthly payment.

To figure out what a comfortable payment is, you can use this calculator to figure out a monthly payment that makes sense for you — and, based on that, what price ranges you should look for.

My husband and I, for example, were preapproved for a $300,000 loan. This would have equaled a $2,044.56 monthly mortgage payment over 15 years. Instead, we purchased a home for $165,000 at an $835.65/month mortgage. Taking on that higher loan amount would have meant I couldn't be a work-at-home mom raising our son, who came along six years later.

Calculate the Down Payment You'll Need

How do you estimate how much you'll need for a down payment? It's a mixture of what type of loan you'll be getting, your credit score and your comfort level. Make sure to check out the different types of loans, as well as their down payment requirements (as a percentage of your home's cost).

Because my husband served in the Navy, he was approved for a VA loan, which had some nice benefits, including no required down payment and smaller closing costs. We ended up making a 9% down payment, anyway.

Save Up a Down Payment ... Plus a Buffer

My PSA about plunking your entire savings into your down payment just to get into your home faster? Don't do it!

You have no idea what issues you'll face in your new home or in your life right after signing those closing documents, so it's important to leave funds in your savings account for these emergencies and extra expenses.

To illustrate the point: One month after our closing day, my car died. And we didn't realize that there was no refrigerator in the home, which meant that we had to purchase a $750 refrigerator. But these things happen. So instead of draining your savings, wait a few more months to buy your home and build up that buffer.

Get Your Documents and Money in Order

There are lots of nitty-gritty details involved between you and your bank, which is why it's so helpful to have a mortgage team working alongside you. Here's a list of the specific documents you'll need. And on top of the down payment and closing costs, you'll need to pay what's called earnest money — anywhere between 1 and 3% of the total asking price — to save your spot as a buyer. The earnest money we paid was 1% of the total purchase price. So for us, this meant getting a cashier's check for $1,650.

As you can see, it helps to put in the legwork so you fully understand what's required of you when buying your first home. Working closely with your mortgage team — especially as a first-time homebuyer — can help reduce the chance of unpleasant surprises. Remember that your mortgage team is a resource to help you navigate your way through the house-buying process in the most efficient way possible, so you can instead focus on setting up your new life.

This material is presented for informational purposes only and should not be construed as individual tax or financial advice. KeyBank does not provide legal advice.

By selecting any external link on, you will leave the KeyBank website and jump to an unaffiliated third-party website that may offer a different privacy policy and level of security. The third party is responsible for website content and system availability. KeyBank does not offer, endorse, recommend or guarantee any product or service available on that entity's website.

NOTICE: This is not a commitment to lend or extend credit. Conditions and restrictions may apply. Information and offers are subject to change without notice. All loans are subject to credit and collateral approval. Not all loans or products are available in all states.

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