The Complete Home Buyer's Guide
YOUR
ROAD TO
HOME OWNERSHIP
Everything you need, from your very first question to the day you hold your keys.
The Journey
DTI & Budgeting
Credit Score
Down Payment
Loan Programs
Antonio Garcia
Mortgage Loan Originator · NextGen Home Loans
ANTONIO GARCIA
Mortgage Loan Originator
What This Guide Will Do For You
By the time you finish this guide, you'll be able to run your own numbers, understand how lenders think, and walk into any mortgage conversation with total confidence. Most buyers leave that power on the table. You won't.
Lender·
Strategist·
Local·
Bilingual
I love being the person who actually returns the phone call, runs the real numbers, and helps a family figure out exactly what they can afford without the runaround. Whether it's your first home or your fifth, I'll lay out your options in plain language and stay on top of every detail until you have keys in hand. Calls answered, texts returned, no surprises along the way. That's the standard I hold myself to.
01
Plain-Spoken
Real answers in language that actually makes sense.
02
Available
Calls answered, texts returned. No waiting around.
03
Detail-Oriented
I stay on top of every step so nothing slips through.
04
Local
Central Valley born and raised. Here for the community.
01
Part One
THE HOME
BUYING
JOURNEY
BUYING
JOURNEY
From "I'm ready" to "I own a home"
Home buying is a 9-step process and most people start at Step 3 without the right foundation. This section walks every stop on the road — clearly, quickly, without the fluff.
You Are Here — Begin at Step 1
Complete each step in order for the smoothest journey
1
01
Get Pre-Approved
Know your budget before you fall in love with a house.
Start Here
2
02
Find a Realtor
Your negotiator and advocate in the market.
Up Next
3
03
Find Your Home & Open Escrow
Make an offer and secure your earnest money deposit.
Coming Up
4
04
Submit Your Loan Application
Your lender initiates the formal approval process.
Coming Up
5
05
Inspections & Appraisal
Protect yourself — know exactly what you're buying.
Coming Up
6
06
Clear Your Conditions
Final documents, verifications and lender sign-offs.
Coming Up
7
07
Final Approval & Closing Disclosure
Review every fee before you sign anything.
Coming Up
8
08
Sign & Fund Your Loan
Sign documents and wire closing funds safely.
Coming Up
9
09
Get Your Keys
You did it. Welcome home.
The Goal
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Before you ever step foot in a house, you need to know exactly how much home you can afford. This is the foundation everything else is built on.
Pre-Qualification
A quick estimate based on what you tell us. Nothing verified. Not taken seriously by sellers in competitive markets.
Pre-Approval
Income, credit and assets fully verified. This is your buying power in writing. Sellers take it seriously.
Tony's Pro Tip
In a competitive market, a pre-approval letter is the difference between winning and losing a home. I'll pull your credit once and do it right the first time — so you're not hurting your score shopping around.
Documents You Will Need
- Last 2 years of W-2s or tax returns
- Most recent 30 days of pay stubs
- Last 2 months of bank statements
- Government-issued photo ID
- Social Security Number for credit pull
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2
Find a Realtor
Your realtor is your negotiator. Find someone who knows how to win in a seller's market. If you're buying a new build — you still need your own agent. The builder's agent works for the builder, not you.
3
Find Your Home & Open Escrow
Once your offer is accepted, you'll open escrow and put down an Earnest Money Deposit. This shows the seller you're serious and goes toward your closing costs at the end.
4
Submit Your Loan Application
Your lender sends disclosures and a Loan Estimate. You sign, confirm the terms, and formal approval begins. This is also when the appraisal and home inspection get ordered.
5
Inspections & Appraisal
The inspection reveals the true condition of the property. The appraisal tells the lender its market value. If it comes in low, you can negotiate — or walk away. Never skip the inspection.
Tony's Pro Tip
Consider locking your interest rate by Step 3 if market rates are moving. Even a small rate increase can cost you hundreds per month. Ask me about the best lock strategy for your timeline.
Questions about any of these steps?
I'm here to walk you through it — no pressure, no obligation.
Schedule a CallI'm here to walk you through it — no pressure, no obligation.
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6
Clear Your Conditions
Upload all required documents as fast as possible. The speed of your closing depends on how quickly you respond.
7
Final Approval & Closing Disclosure
Three days before closing you receive your Closing Disclosure — a full breakdown of every fee. Compare it line-by-line to your Loan Estimate. If anything changed, ask why before you sign.
8
Sign & Fund Your Loan
Sign with a title-approved notary, then wire your closing funds. Always verify wiring instructions directly with your escrow officer by phone before sending money.
9
Get Your Keys
Once the loan funds and the deed records — you're a homeowner. Welcome home.
Tony's Most Important Tip
Do not open new credit cards, buy a car, quit your job, or make large deposits during this entire process. Any change to your financial profile can delay or kill your loan — even on closing day. Stay boring until you have the keys.
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Part Two
NOW LET'S
TALK MORTGAGE.
TALK MORTGAGE.
You now know the full journey. But the journey only works if you qualify. In Part Two we go deeper into how a mortgage works, how lenders think, and how to pre-qualify yourself before you ever pick up the phone.
01
Debt-to-Income
The #1 factor determining your buying power.
02
Credit Score
What lenders actually look at — and how to maximize it.
03
Income
W-2, self-employed and rental — all calculated differently.
04
Down Payment
How much you need — and sources you may not know about.
05
Mortgage Payment
What is really inside your monthly payment.
06
Loan Programs
FHA, Conventional, VA, USDA — which one fits you?
DTI is the most important number in mortgage qualifying. It tells the lender what percentage of your income goes toward debt — and determines how much home you can afford.
Front-End DTI
Housing costs only: principal, interest, taxes, insurance, PMI, and HOA.
Back-End DTI
Front-end PLUS all other monthly debts: car loans, student loans, credit cards, child support.
Maximum DTI by Loan Type
| Loan Type | Max Front-End | Max Back-End | Sweet Spot |
|---|---|---|---|
| Conventional | 45% | 50% | ≤ 36% |
| FHA | 45% | 55% | ≤ 43% |
| VA | No limit | 41% | ≤ 41% |
| USDA | 29% | 41% | ≤ 41% |
| Jumbo | 43% | 43% | ≤ 43% |
Tony's DTI Secret
The fastest way to increase your buying power is to pay off debt. Eliminating a $400/month car payment can add $50,000–$80,000 to your qualifying purchase price. I call this the seesaw game — less debt on one side means more home on the other.
Want to calculate your exact DTI?
I'll run the numbers with you in 15 minutes — free, no commitment.
Schedule a CallI'll run the numbers with you in 15 minutes — free, no commitment.
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Your credit score is your financial report card. Lenders use it to decide whether to approve you — and at what rate. Higher score means lower rate and lower monthly payment.
300PoorFairGoodVery GoodExcellent850
300–579 Poor
580–619 Fair
620–659 OK
660–699 Good
700–739 Great
740+ Best Rate
What makes up your score: Payment history (35%) · Amount owed (30%) · Credit history length (15%) · Credit mix (10%) · New credit (10%)
Minimum Scores
FHA: 580 minimum
Conventional: 620 minimum
VA: 580 minimum
Jumbo: 660+ minimum
Conventional: 620 minimum
VA: 580 minimum
Jumbo: 660+ minimum
Best Rate Scores
FHA: 660+ for best terms
Conventional: 700+ for cheapest PMI
All programs: 740+ for best rate
Conventional: 700+ for cheapest PMI
All programs: 740+ for best rate
Tony's Credit Tip
The score on Credit Karma is NOT the same score lenders use. Lenders pull from Equifax, Experian, and TransUnion using a mortgage-specific model — FICO 2, 4, and 5. They take the middle of your three scores. Let me pull the right one before you make any assumptions.
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You don't need 20% down. Most buyers are surprised to find out how little they actually need — and that they may already have enough.
Loan Programs at a Glance
Conventional
Down Payment: 3–5% minimum
Credit: 620+ (700+ for best rate)
PMI: Drops off at 20% equity
Best for: Strong credit buyers
FHA
Down Payment: 3.5% minimum
Credit: 580+ (as low as 500)
PMI: Required (drops at year 11)
Best for: First-time & lower credit buyers
VA
Down Payment: 0% — none required
Credit: 580+ recommended
PMI: None — ever
Best for: Veterans & active military
USDA
Down Payment: 0% in eligible rural areas
Credit: 640+ for auto-approval
PMI: Small monthly fee
Best for: Rural and suburban buyers
Tony's Down Payment Secret
You can use gift money from family, retirement accounts, equity from another property, or Down Payment Assistance programs. You might already have more than you think. Let's run through your options before you assume you can't buy.
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You Made It
READY TO TAKE
THE NEXT STEP?
THE NEXT STEP?
You now have the knowledge most buyers never get. The only thing left is to take action. I'm here when you're ready — no pressure, no rush. Real help from someone who genuinely wants to see you win.
¡Hablo Español!
Antonio Garcia
Mortgage Loan Originator
NMLS: 2586617
Are you a real estate agent? I'd love to talk about partnering together. My team is built on speed, communication, and results — everything your clients deserve.
Let's Connect
Antonio Garcia · NMLS #2586617 · NextGen Home Loans · theteamprosper.com
This guide is for informational purposes only and does not constitute a commitment to lend. Loan approval is subject to credit approval and program guidelines. Not all programs available in all states. Interest rates subject to change without notice. NextGen Home Loans is an Equal Housing Lender.
This guide is for informational purposes only and does not constitute a commitment to lend. Loan approval is subject to credit approval and program guidelines. Not all programs available in all states. Interest rates subject to change without notice. NextGen Home Loans is an Equal Housing Lender.