Buying your first home is an exciting milestone—but let’s be honest, some parts of the process can feel like learning a new language. One of the biggest terms you’ll encounter right away? The mortgage.

If you’re starting your home search around Raleigh, Cary, or Apex, understanding how mortgages work will give you confidence and help you move forward with clarity. So let’s break it down together—from the basics to the types of loans available, and how to qualify.

What Is a Mortgage?

At its simplest, a mortgage is a loan you take out to buy a home. You borrow money from a lender, and in return, you agree to pay that money back over time—usually 15 to 30 years—with interest.

Think of it like a monthly rental payment, but you’re investing in your own future. Each payment builds equity in a home that’s yours.

And here’s the good news: You don’t need to have the entire price of a home saved up to become a homeowner. That’s what your mortgage helps with.

What Types of Mortgages Are There?

There’s no one-size-fits-all mortgage. Depending on your income, down payment, credit score, and home price, there are several options available—including one that might surprise you.

1. Conventional Loans

These are offered by private lenders and aren’t backed by the government. They’re great if you have solid credit (typically 620+) and at least 3% to put down.

2. FHA Loans

Backed by the Federal Housing Administration, FHA loans are popular with first-time buyers. They allow lower credit scores (580+) and down payments as low as 3.5%.

3. VA Loans

Available to eligible veterans, service members, and spouses, these loans offer major perks—no down payment, no mortgage insurance, and competitive rates.

4. USDA Loans

Designed for rural and some suburban areas, USDA loans offer zero down payment and are a great fit in qualifying parts of the Triangle area.

5. Jumbo Loans – Offered Through Our Trusted Lending Partners

If you’re buying a higher-priced home—typically above $800,000—you may need a jumbo loan. These loans are for buyers who exceed the standard loan limit and often come with slightly stricter credit, income, and reserve requirements.

At The Coley Group, we’re proud to offer jumbo loan solutions through our trusted lending partners, helping you confidently purchase in some of Raleigh’s most exclusive communities—without financial compromise.

How Do I Qualify for a Mortgage?

Most lenders evaluate a few key factors when determining whether you qualify for a mortgage—and how much you can borrow:

• Credit Score – Generally, you’ll need a minimum score between 580–620, depending on the loan type.
  
• Debt-to-Income Ratio (DTI) – This measures how much of your monthly income goes toward debt. Most lenders prefer it under 43%.
  
• Income & Job Stability – Expect to provide recent pay stubs, tax returns, or proof of income for the last 1–2 years.
  
• Down Payment – Depending on the loan, you could need anywhere from 0% to 20% down.
  
• Pre-Approval – A pre-approval letter shows sellers that you’re serious and financially ready, giving your offer a competitive edge.
  

Why Work with The Coley Group and Our Trusted Lender Partners?

As a first-time homebuyer, you don’t just need a loan—you need a guide. At The Coley Group, we pair our real estate expertise with trusted lending partners who will walk you through every step of the mortgage process, from application to closing.

We also offer exclusive access to off-market listings, so you face less competition and more opportunity to find the right home—especially helpful in today’s competitive Triangle market.

Whether you’re exploring starter homes or considering a luxury move with a jumbo loan, we’ve got you covered.

Ready to Take the First Step?

You don’t have to figure this out alone. The Coley Group is here to simplify the mortgage journey, connect you with trusted local lenders, and help you find your perfect home in Raleigh or beyond.

Contact us today to learn more about your mortgage options and get pre-approved through one of our experienced lending partners.

Let’s open the door to Raleigh’s best—together.