Prepare for your home-buying journey and secure your dream property
with these streamlined, step-by-step first-time home buyer guides.
Dreaming of putting down roots in the Peace Garden State? Buying a home is a big milestone, and it’s completely natural to feel a little overwhelmed by the process ahead. From North Dakota’s wide-open spaces to its affordable cost of living, there’s plenty to get excited about. We’ve broken down the journey into a clear, manageable guide to help you plan your finances and navigate the path to your first home with confidence.
So, what is a first-time homebuyer? You might think a first-time homebuyer is only someone who has never owned any property before, but the official definition is actually much broader. According to the U.S. Department of Housing and Urban Development, a first-time homebuyer is someone who has not owned a principal residence in the last three years.
First-time homebuyers also include individuals who have only owned a home with a former spouse and those who have owned a home that was not permanently attached to a foundation or that did not comply with building codes. Knowing these details helps you understand if you qualify as a first-time homebuyer before you begin shopping for a house.
There are many first-time homebuyer advantages that can help you purchase a home in North Dakota. The North Dakota Housing Finance Agency (NDHFA), for instance, provides affordable mortgages through FirstHome and Downpayment and Closing Cost Assistance.
These North Dakota first-time home-buying assistance programs lower the initial cash requirements for buying your first home. Whether you are eligible for these resources depends on your household income, your credit score, and the location of the property.
Ask your loan officer about down payment assistance programs during your initial conversations, as they’ll know which programs the lender accepts and can guide your application. You’ll also need to take a homebuyer education course in order to access the NDHFA’s programs.
Recommended: North Dakota First-Time Home-Buying Assistance Programs
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Buying a home is an exciting milestone that requires careful preparation. Read on for a walk-through of the process, as well as first-time homebuyer tips that can help you protect your finances and find the right property.
Start by evaluating your personal finances to determine if you’re financially ready. If local rents are higher than a typical house payment, homeownership may make financial sense. Lenders usually require your debt-to-income (DTI) ratio to be less than or equal to 36%, although government-backed loans may allow a DTI ratio of up to 50%. Staying within these limits protects your long-term financial stability.
You’ll also want to establish credit, which can enable you to qualify for lower rates from lenders, and consider how long you intend to stay in the new home. The longer you live there, the more your home equity can increase through property appreciation and regular payments.
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Establishing a budget helps you find a home that fits your comfort zone — and your life. Your budget should cover more than just your monthly mortgage payment; don’t forget to factor in property taxes, any homeowners association (HOA) dues, and ongoing maintenance costs. To get a clear picture of what you can afford, consider using a home affordability calculator.
Beyond the mortgage, remember to account for costs like moving expenses, new furniture, or landscaping. And if you’re moving from out of state, be sure to research the local cost of living.
While a 20% down payment is the gold standard for avoiding private mortgage insurance (PMI), remember that many options exist. Conventional loans can require as little as 3% down, while VA and USDA loans often require no down payment at all. You can use a down payment calculator to see exactly how much cash you’ll need upfront.
Choosing the right type of mortgage loan is one of the most important decisions you’ll make. Here are the most common options:
Shopping around for a mortgage lender can save you money over the life of your home loan, as it allows you to evaluate customer experience, preapproval timelines, and lenders’ rates. As you compare lenders, look at the annual percentage rate (APR). The APR includes the baseline interest rate plus extra costs such as lender fees and discount points.
Take the time to learn about the difference between prequalification vs. preapproval. Prequalification is an informal estimate of what you can borrow based on unverified data, while preapproval is a formal commitment where a lender verifies your financial history and background.
For the mortgage preapproval process, you’ll need to provide bank statements, pay stubs, and federal tax returns from the past two years. A mortgage preapproval letter is usually good for 30-90 days and can give you a competitive advantage when you search for a home, as it shows home sellers you’re a serious buyer. Some lenders will lock your interest rate during this preapproval period to give you cost stability.
Working with a real estate agent can save you time, as an agent can tailor the home search to your criteria, access the multiple listing service database, and track new houses coming onto the market. They can also preview homes for you and handle paperwork and price negotiations with the seller.
Consider reading up on how real estate commission fees are changing. Recent legal settlements have changed commission structures, so understanding how they now work will help you avoid overpaying during the transaction.
Once you’re preapproved, it’s time to start the fun part: searching for your home. Beyond the house itself, consider the bigger picture — commute times, school districts, and neighborhood vibes. Your agent will keep you updated on new listings, and visiting homes in person will help you clarify what truly matters to you.
As you tour properties, it’s important to know your rights regarding housing discrimination. Federal law protects you from bias based on race, religion, or family status. Agents are required to treat you fairly, and they cannot steer you toward or away from specific neighborhoods based on protected characteristics. If you ever feel uncomfortable, document your conversations and keep track of property listings.
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Once you’ve found The One, you’re ready to make a formal offer. Your real estate agent will help you pull comparable sales data to ensure your bid is competitive, and they’ll draft an official offer letter for the seller.
This letter outlines key details, including your offer price, your target timeline, and specific contingencies — these protect your deposit if something goes wrong with financing or the home inspection. If the seller accepts, you’ll sign a formal contract and submit an earnest money deposit to an escrow account to show you’re committed to the purchase.
Ordering a professional home inspection is an important step that homebuyers should never skip. A certified inspector examines the physical condition of the house from the roof to the foundation and checks the mechanical systems, plumbing connections, electrical panels, and structural integrity to find hidden issues.
This process usually costs $200-$400 out of your own pocket, though the price can vary. It can be a good idea to shop around for quotes from local inspectors to find the best service and value. If the inspection report reveals major damage, you can negotiate repairs or walk away from the deal.
While a home inspection evaluates the property’s physical condition, an appraisal determines its official market value. Lenders require an appraisal to ensure they don’t loan more money than the home is worth and will provide an independent appraiser to complete the assessment objectively.
As with an inspection, an appraisal involves a visual examination of the property, so you’ll need to schedule a time to allow the appraiser access to the home. The homebuyer pays the appraisal fee, which typically ranges from $300 to $600.
Reaching closing day is a major accomplishment! This is where you finalize your mortgage and officially become a homeowner. Before the big day, keep a few things in mind:
Once these steps are complete, the title company will record the deed, and you’ll get your keys. Congratulations — you’re a homeowner!
An online calculator can be a big help in comparing home equity loan rates and terms. And it’s not the only calculator you’ll find helpful during your home equity loan process:
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Careful planning can ensure a smooth transition as you move into your new property. Here is a move-in checklist to help you settle in successfully:
Purchasing your first home in North Dakota is achievable when you use state assistance programs and prepare your personal budget carefully. With a clear step-by-step plan, you’ll be able to move through the mortgage process and navigate the state’s housing market with confidence.
When buying a house for the first time, you need to save enough money for a down payment, monthly mortgage payments, property taxes, homeowners insurance, and any association dues. A down payment can be as low as 3% for conventional loans, while for FHA mortgages, you’ll need a down payment of 3.5% if you have a credit score of 580 or 10% for a credit score of 500-579. You’ll also need to pay closing costs, which typically run between 2%-5% of your total loan amount.
The credit score you need as a first-time homebuyer depends on the mortgage program you choose. Conventional loans usually require a minimum credit score of 620, while FHA loans allow buyers to qualify with a score of 500 with a 10% down payment or 500-579 with a 3.5% down payment. Government programs such as VA and USDA loans don’t have a set minimum score.
Start the home-buying process by checking your personal finances to see if you’re financially ready. The next step is to calculate a realistic budget, choose a mortgage option that suits your circumstances, and find a lender to secure a mortgage preapproval letter. You may also want to gather your financial documents early and work with a real estate agent, who can help you find homes within your target price range.
The best loans for a first-time homebuyer depends on your individual circumstances. FHA loans are popular because they offer low down payments and flexible credit standards for lower-income buyers, while conventional 97 loans require only 3% down and work well for buyers with decent credit scores. Eligible military veterans can utilize VA loans, which require zero down payment and no mortgage insurance.
To qualify for a first-time homebuyer program in North Dakota, you must not have owned a principal residence within the past three years. Programs administered by the North Dakota Housing Finance Agency also require you to meet specific income guidelines and purchase price limits based on your county and family size. You’ll need to complete an approved homebuyer education course as well.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
This article is not intended to be legal advice. Please consult an attorney for advice.Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
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