First-Time Homebuyer Tips for Lebanon, NH

Written by Spenser Molloy, Broker/Agent | NextHome Modern Realty

Buying your first home in Lebanon comes with the same fundamentals as anywhere else, credit, savings, a good team, plus a handful of things specific to this market that catch first-time buyers off guard. Here is what actually matters, roughly in the order you will encounter it.

Check Your Credit Before You Do Anything Else

Your credit score affects both whether you qualify for a loan and what interest rate you get, and it is worth checking months before you plan to buy, not the week you start touring homes. Conventional loans generally require a minimum credit score around 620, while FHA loans can work with scores as low as 580 with a 3.5 percent down payment. If your score needs work, paying down credit card balances and avoiding new credit inquiries in the months before applying can meaningfully improve your rate.

Start Saving With a Real Target, Not a Guess

Your down payment is only part of what you need saved. Budget for closing costs too, typically 2 to 5 percent of the purchase price, covering things like the appraisal, title insurance, and lender fees. On top of that, keep a reserve for moving costs and immediate home needs, since most first-time buyers underestimate how much cash leaves their account in the first month of ownership. If a full 20 percent down payment feels out of reach, New Hampshire Housing offers several down payment assistance programs worth exploring, which we cover in detail in our guide on how much house you can afford in Lebanon.

Get Pre-Approved, Not Just Pre-Qualified

This distinction matters more than most first-time buyers realize. Pre-qualification is based on numbers you self-report. Pre-approval is based on verified income, assets, and credit, and produces a real letter that sellers expect to see with a serious offer in a competitive market like Lebanon's. Getting this done before you start touring homes also gives you a real number to shop within, rather than falling for a home that is genuinely outside your budget.

Build Your Team Before You Need It

A first-time purchase involves more people than just you and a seller: a real estate agent, a lender, a home inspector, and often a title company or attorney. Interview your agent specifically on their experience with first-time buyers and their knowledge of Lebanon's specific neighborhoods, not just their overall sales volume, something we cover in full in our guide on how to choose the right real estate agent. If you are weighing whether to skip an agent entirely to save on commission, our honest breakdown on buying without a realtor is worth reading first, since the math is more complicated than most people assume, especially for a first purchase.

Understand Contingencies Before You Waive Any of Them

A typical New Hampshire purchase and sale agreement includes contingencies for financing, inspection, and sometimes appraisal, each one giving you a legitimate way to walk away from the deal, or renegotiate, if something goes wrong. In a competitive offer situation, it can be tempting to waive an inspection contingency to make your offer more attractive. For a first-time buyer especially, this is a real risk, not just a formality, an inspection is often the only real look you get at a home's condition before you own it.

Know What Earnest Money Actually Is

When your offer is accepted, you will typically put down earnest money, a deposit, usually 1 to 3 percent of the purchase price, held in escrow to show you are serious. This money applies toward your down payment and closing costs at closing, but it can be at risk if you back out of the deal outside your contingency protections, which is one more reason to understand your contingencies clearly before you sign.

Budget for Lebanon's Property Tax From Day One

This is a genuinely common first-time buyer mistake here specifically: focusing on the mortgage payment and forgetting property tax is a large, real, ongoing monthly cost. Lebanon's 2025 rate is $21.53 per $1,000 of assessed value, which adds roughly $1,075 a month on a $600,000 home. We break this down fully in our guide on Lebanon's property taxes, and it is worth building into your monthly budget from your very first affordability calculation, not adding it in as an afterthought once you are already under contract.

Understand Lebanon's Specific Market Before You Start Touring

Lebanon is a small, low-inventory market, and our Upper Valley Real Estate Market Report tracks current pricing and pace in detail. Well-priced homes in high-demand neighborhoods like Seminary Hill and The Peninsula can move quickly and sometimes draw multiple offers, while other homes or neighborhoods may sit longer. Knowing which situation you are walking into on a specific home, something a good local agent can tell you, changes how you should approach your offer.

Don't Skip Homebuyer Education If You're Using an Assistance Program

If you plan to use a New Hampshire Housing down payment assistance program, most require a homebuyer education course, often available online or in person through approved providers. This is not just a box to check. These courses genuinely cover budgeting, the closing process, and homeownership costs in a way that benefits any first-time buyer, whether or not the program requires it.

Common First-Time Buyer Mistakes to Avoid

• Shopping for homes before getting pre-approved, which leads to falling in love with something outside your real budget.
• Waiving inspection contingencies to compete on offers without understanding the real risk involved.
• Forgetting property tax, insurance, and closing costs when calculating what you can actually afford.
• Making large purchases or opening new credit between pre-approval and closing, which can jeopardize your final loan approval.
• Assuming the first home you see is the only option, especially without understanding current pace and competition for that specific neighborhood or price point.

FAQ

What credit score do I need to buy a first home in Lebanon, NH? Conventional loans generally require a minimum around 620, while FHA loans can work with scores as low as 580 with a 3.5 percent down payment.

How much should I save beyond my down payment? Budget an additional 2 to 5 percent of the purchase price for closing costs, plus a reserve for moving expenses and immediate home needs.

Is homebuyer education required to buy a home in New Hampshire? Not for every purchase, but it is generally required if you use a New Hampshire Housing down payment assistance program, and it is worth taking even if it is not required.

Should I waive the inspection contingency to make my offer more competitive? Generally not recommended for a first-time buyer. An inspection is often your only real opportunity to understand a home's condition before you own it.

What is earnest money, and is it refundable? Earnest money is a deposit, typically 1 to 3 percent of the purchase price, applied toward your down payment at closing. It is generally refundable if you back out within your contract's contingency protections, but can be at risk if you back out outside of them.

Ready to Start Your First Home Search?

Every one of these steps gets easier with the right team in your corner from the start. Spenser and Brian at NextHome Modern Realty work with first-time buyers throughout Lebanon and the Upper Valley regularly, and we are glad to walk through your specific situation, budget, timeline, and neighborhood priorities, before you make an offer on anything.

This article was written by Spenser Molloy, Broker/Agent at NextHome Modern Realty, for accuracy and local context. This article is provided for general informational purposes only and is not financial or legal advice. Confirm current loan requirements and assistance program details directly with a licensed lender.