Buying a home can be challenging for anybody. For homebuyers with modest incomes, or anyone buying a home for the first time, it can be even more difficult. With higher home prices and interest rates, it can be intimidating to even get started.

But despite those hurdles, there’s good news. In recent years, there’s been an increase in efforts to provide education about what it means to buy and own a home. And a range of new affordable lending options means that a modest income and credit scores aren’t the obstacles to buying a home that they used to be.

Today, if you’re a first-time or first-generation homebuyer, or you’re not sure if you make enough income or have enough of a down payment to purchase a home, homeownership is more possible than ever. Here’s what to know about the homebuying process, and what steps you should take.

Can You Buy a Home on a Modest Income?

There are a number of mortgage programs offered by state or local agencies, nonprofits, and Bell Bank Mortgage that are designed to make it more affordable for you to buy a home. These programs may have more flexible credit score requirements, or provide assistance for closing costs or down payments.

Do You Need a 20% Down Payment?

No, you don’t need a 20% down payment to buy a home. While there are benefits to making a larger down payment, such as having lower monthly payments on your mortgage and potentially avoiding private mortgage insurance, it’s not required. With the help of affordable mortgage programs such as FHA loans, VA loans, Bell’s Moving Forward special purpose credit programs and more, you could buy a home with a down payment of 3% or less. Plus, through Bell’s relationship with local counties, you could receive a grant for putting toward your down payment amount, making your home purchase even more affordable.

Where to Begin Your Home Search

If you’re ready to begin looking for a home, the first thing you should do is meet with a loan officer. It may be tempting to jump right into your search and start looking at houses, but a loan officer will work with you to make sure you’re prepared, said Emily Strong, affordable product manager at Bell Bank Mortgage. “A common mistake is that people go to a real estate agent first because they want to find the perfect home,” Emily said. “Instead, start with a loan officer, and they’ll get to know you and your goals and help you develop a plan.”

Find a Bell Bank Mortgage Loan Officer Near You

A loan officer will review your finances to help you determine a budget for your home search. They’ll take a look at your credit to see whether you have an acceptable score or if you need credit assistance, and will also provide an overview of different loan programs to help you understand the mortgage options available to you.

Learn More

In addition to working with you on your budget and credit situation, your loan officer will also make sure you have the information and knowledge about the homebuying process and what it means to be a successful homeowner. Participating in a homeownership education program can help buyers get a better idea of what to expect, and learn what it takes to own and maintain a home, said Kasey Kier, national community development manager at Bell Bank Mortgage.

“We don’t want to just get you into a home – we want to empower you to be a sustainable homeowner over time,” she said. “We want to make sure you have the information and knowledge to be successful long-term.”

Bell partners with a number of nonprofits and state agencies that provide homebuyer education and 1:1 advising services for homebuyers. These services can range from an overview of the mortgage process to budgeting and the costs involved with owning a home, such as property taxes, homeowners insurance and maintenance costs. Your loan officer can connect you with an organization or program that’s appropriate for your situation.

Get Pre-Approved and Start Shopping

At this point, you should know what to expect from the process, and the type of mortgage options available to help you. Now, you’re ready to get pre-approved and begin your search! Your loan officer will let you know what documents they need to create a pre-approval letter for you, and then you’ll be ready to find a real estate agent and start shopping.