Pre-approval
A pre-approval is a lender's written statement of how much they will actually lend you, based on documents you provide. It is stronger than a pre-qualification, which is only an estimate based on what you tell them.
Life event
First-time and first-generation home buyers
For buyers purchasing their first home in Louisville, Kentucky or Southern Indiana — including buyers who are the first in their family to do it.
Buy now or wait?
Four questions and where to reach you. Your honest read comes back on the spot — no waiting, no phone call.
What does a first-time buyer actually need to get started?
A lender pre-approval, a written buyer agency agreement and a price range you are comfortable with — in that order, before you tour a single home.
- A lender pre-approval — takes a day or two and tells you your real budget.
- A written buyer agency agreement — puts in writing what I do for you and how I am paid.
- A price range you are comfortable with.
Both come before showings so nothing about the process surprises you later.
How much do I need for a down payment?
0% on a VA loan if you are eligible, 3.5% on FHA, and as little as 3% on some conventional first-time buyer products, plus closing costs on top of that.
- 0% on a VA loan, if you are eligible.
- 3.5% on FHA.
- As little as 3% on some conventional first-time buyer products.
- Closing costs on top of all of them.
Kentucky Housing lends up to $12,500 toward the down payment and the closing costs — the closing costs are the part people miss, and usually the part that actually stops them. Indiana has its own programs. See what Kentucky and Indiana actually offer.
Down payment assistance terms change, so I have a lender confirm what is currently available before you plan around it.
Want to talk it through first?
The first conversation is free, and you leave knowing exactly what your next step is.
Booking only holds a time on my calendar. Nothing to sign, no obligation.
What happens between an accepted offer and closing?
Seven steps: earnest money, inspection, negotiation of repairs, appraisal, loan underwriting, final walkthrough, closing — typically 30 to 45 days in total.
- Earnest money is deposited, showing the seller you are serious.
- Inspection: you hire the inspector and you receive the report.
- Repair negotiation: repairs, a credit, a price reduction, or walking away.
- Appraisal: the lender confirms the home supports the loan amount.
- Underwriting: do not open credit accounts or change jobs during this window.
- Final walkthrough, usually the day before or morning of closing.
- Closing: you sign, funds transfer, you get keys.
What if nobody in my family has bought a home before?
Then you get the full explanation of every step in advance instead of being handed paperwork, which is how I work with first-generation buyers by default.
- No question is too basic.
- Nothing gets signed that has not been explained.
- You will never be rushed into a decision because a deadline was mentioned to you late.
What do these home buying terms actually mean?
The terms that come up most often in a first home purchase are earnest money, contingencies, the appraisal and appraisal gap, underwriting, closing costs, escrow, title and mortgage insurance — each explained here in plain language, and explained again in person before you sign anything.
Buyer agency agreement
A buyer agency agreement is the written contract between you and your agent that says what the agent will do for you and how they are paid. It is signed before you tour homes.
Earnest money
Earnest money is the deposit you put up after a seller accepts your offer, to show you are serious. It is held by a third party and applied to your costs at closing — it is not an extra fee.
Contingency
A contingency is a condition written into your contract that lets you walk away and keep your earnest money if something specific does not work out, like the inspection or the loan. Miss the deadline on a contingency and you lose that protection.
Inspection
An inspection is an examination of the home's condition by an inspector you hire and pay. The report goes to you, and it is what you use to decide whether to ask for repairs, ask for money, or walk.
Appraisal
An appraisal is the lender's estimate of what the home is worth, ordered by the lender to confirm the home is worth what they are lending on it. It is about value, not condition — that is the difference between an appraisal and an inspection.
Appraisal gap
An appraisal gap is the difference when a home appraises for less than you agreed to pay. The lender will only lend against the lower number, so the gap has to be covered in cash, renegotiated, or the deal ends.
Underwriting
Underwriting is the lender's final review of your finances before they release the money. Do not open credit accounts, make large deposits, or change jobs during this window.
Closing costs
Closing costs are the fees due at closing that are separate from your down payment — lender fees, title work, recording, taxes and insurance set up in advance. These are the costs that surprise first-time buyers most often.
Escrow
Escrow means money or documents held by a neutral third party until the conditions of the deal are met. The word is also used for the account your lender uses to hold your taxes and insurance after you own the home.
Title
Title is the legal ownership of the property. A title search confirms the seller actually owns it free of claims, and title insurance protects you if something turns up later.
Mortgage insurance
Mortgage insurance is an extra monthly cost that protects the lender, not you, and is generally required when you put down less than 20%. On a conventional loan it can usually be removed once you have enough equity; FHA loans work differently, so ask your lender which applies to you.
Can I buy a first home in Southern Indiana too?
Yes — Alexandria is licensed in Kentucky and in Indiana, so your search can include Louisville and Southern Indiana with the same agent.
Ready to start? Call 859.684.9995 or send a message.
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