"I always recommend buyers talk to a lender before they talk to me. When a buyer knows they're approved for $380,000, we focus there. Get pre-approved first — it takes a few days and it's free."David DonovanSarasota & Manatee Counties
Every first-time buyer I work with comes in with the same handful of misconceptions — about how much they need saved, whether their credit is good enough, how competitive the market really is, and what actually happens between scrolling Zillow and signing at the closing table. This is the honest version, before we start working together.
The three most common things I hear from first-time buyers who are on the fence: "I don't have 20% saved," "I don't think my credit is good enough," and "the market is too competitive right now." I understand all three. And all three are worth addressing directly, because in most cases they're either wrong or more manageable than people think.
The 20% down payment myth is probably the biggest single reason people delay buying by years — sometimes a decade. The credit score concern is real, but the bar is often lower than buyers assume. And the competitive market? It's real too, but it's navigable with the right preparation and the right agent. Let's go through each of these.
You do not need 20% down to buy a home. This idea stuck around from an era when it was the standard, but today there are multiple loan programs that require far less — and many first-time buyers in Sarasota are using them.
| Program | Down Payment & Notes |
|---|---|
| FHA Loan | As little as 3.5% down for eligible borrowers with a credit score of 580 or higher, subject to lender requirements. One of the most popular options for first-time buyers. Requires mortgage insurance (MIP), but it's often worth the trade-off to get into a home sooner. |
| Conventional (low down payment) | Some conventional programs, such as Fannie Mae HomeReady and Freddie Mac Home Possible, allow as little as 3% down for eligible borrowers; income limits and other requirements apply. Often better than FHA if your credit score is 680+, because private mortgage insurance (PMI) typically costs less and eventually drops off at 20% equity. |
| VA Loan | 0% down for eligible veterans and active-duty service members. Excellent terms, no PMI, and often easier to qualify for. |
| USDA Loan | 0% down for eligible rural and suburban areas. Parts of greater Sarasota-Manatee qualify. Income limits apply. |
| Florida First / HLP | Florida Housing Finance Corporation programs offering down payment assistance to qualifying first-time buyers. Your lender can confirm eligibility. |
The trade-off with lower down payments is that you'll carry mortgage insurance until you reach 20% equity, and your monthly payment will be higher than if you'd put more down. But for many buyers, the math of getting into a home 5 years earlier — and building equity during that time — outweighs the cost of PMI. Run the numbers with a lender before you assume you're not ready.
Your credit score is important, but "good enough to buy a home" is a lower bar than most people expect.
| Score | What It Gets You |
|---|---|
| 580+ | Can qualify for FHA financing with as little as 3.5% down, subject to lender requirements. |
| 620+ | Opens most conventional loan options. |
| 680+ | Where you start getting meaningfully better rates. |
| 740+ | Gets you the best rates available. |
| Below 580 | Can make approval harder and limit your options, but it isn't necessarily the end of the road. A lender can explain what's possible for your situation and what to work on first. |
If your score is in the 600–650 range, don't assume you can't buy. Talk to a lender first. A good mortgage professional can sometimes identify quick wins — paying down a specific account, disputing an error — that can move your score 20–40 points in 60–90 days. That shift can mean the difference between FHA and conventional, which affects your long-term costs significantly.
Before touring homes, we'll review the services, representation, and compensation terms so you can make an informed decision. Real estate compensation is negotiable and documented in writing.
In Florida, how a buyer's agent is compensated is set out in a written buyer representation agreement before we tour homes. Depending on the transaction, it may be paid by the seller, by the buyer, or through a combination — the terms are negotiable and vary deal by deal. We'll go through them together before you commit to anything.
What does your agent do? A lot more than most buyers realize: access to MLS listings before they hit Zillow, coordinating and attending every showing, advising on offer strategy and pricing, writing and negotiating the contract, managing the inspection process, and following the transaction through to closing — all while advocating exclusively for your interests. The listing agent works for the seller. You need someone working for you.
It depends enormously on the neighborhood and price point. Southwest Florida's market is not monolithic. In some pockets — Sarasota's Southside Village under $500K, parts of Rosemary District, anything move-in-ready in University Park — competition is real and homes move fast. In other areas or price ranges, you may have time to think.
"Competition rewards preparation, not luck."
Buyers who are pre-approved, clear on what they want, and working with an agent who can move quickly can compete effectively even in fast markets. Buyers who are still figuring things out get passed over — not because the market is unfair, but because sellers naturally choose the offer with the least uncertainty. When I've helped first-time buyers win competitive offers, it's usually because we did the preparation work early: financing locked, priorities clear, and a strategy that made our offer look clean and credible even if the price wasn't the highest on the table.
Nobody talks about this enough. Buying your first home is a big emotional experience — and that's completely normal. Excitement, anxiety, second-guessing, "maybe we should just keep renting," followed by "I love this house, let's offer over asking" — these emotional swings are part of the process.
What I try to do is give you a framework for decisions so that emotions inform them without controlling them. When you lose a home you loved, I want you to understand why the loss happened and what we do differently next time — not just feel devastated. The goal is a decision you feel good about six months after moving in, not just six minutes after touring.
Touring homes before you know your number is how buyers fall in love with something they can't afford. Get pre-approved first — it takes a few days and doesn't commit you to anything.
The down payment is just the beginning. Closing costs vary by financing, lender, property, taxes, title and closing arrangement, insurance, and contract — your Loan Estimate shows the figures for your transaction. Inspection fees, moving costs, and immediate home expenses add up too, so ask your lender to walk you through a full cost estimate early.
Once you're pre-approved — and especially once you're under contract — do not change jobs, open new credit cards, or make large purchases on credit without asking your lender first.
In competitive markets, some buyers waive the inspection to win an offer. Unless you're buying new construction or a home you know extremely well, I generally advise against this. The inspection fee depends on the inspector and the property, and the findings can be well worth knowing before you commit.
Whether flood insurance is required depends on the property's flood zone and your lender's requirements, and what it costs depends on the specific property. Get quotes before you make an offer, not after you're under contract. See the flood zone and insurance guide for how to verify a specific property.
Buyer-agent compensation is negotiable and set out in your written representation agreement, not by law — but the wrong agent, or no agent at all, can still cost you far more than that agreement is worth. This is not the place to save money by going it alone.
You don't need to have all of this perfectly organized before calling me. Part of what I do in our first conversation is help you figure out where you are and what needs to happen next. But the buyers who move fastest are the ones who walk in with this stuff ready to go. Once you're ready to look, here's how a strong offer actually gets made.
"I always recommend buyers talk to a lender before they talk to me. When a buyer knows they're approved for $380,000, we focus there. Get pre-approved first — it takes a few days and it's free."David DonovanSarasota & Manatee Counties