by Patricia Diffey Buying your first home is one of the most exciting milestones you’ll ever experience—but let’s be honest, it can also feel overwhelming. With so many steps, terms, and decisions to make, it’s easy to get lost in the process. But don’t worry—I’m here to simplify it for you! Whether you’re just starting to explore the idea of homeownership or you’re ready to make an offer, here are five key things every first-time homebuyer should know.
1. You Don’t Need a 20% Down Payment
One of the biggest myths in real estate is that you need a 20% down payment to buy a home. The truth? Many first-time buyers can purchase a home with as little as 3% to 5% down. Depending on your situation, you might even qualify for zero-down programs like VA or USDA loans.
Additionally, there are first-time homebuyer assistance programs that can help cover down payments or closing costs. These programs vary by state and city, so it’s worth doing some research or talking to a knowledgeable agent (like me!) who can point you in the right direction.
2. Get Pre-Approved Before You Start House Hunting
It’s tempting to jump straight into browsing homes online or touring open houses, but getting pre-approved for a mortgage should be your first step. A pre-approval tells you how much home you can afford and shows sellers you’re serious when it’s time to make an offer.
Without a pre-approval, you might fall in love with a home that’s out of your price range—or worse, miss out on your dream home because another buyer was better prepared. Plus, it helps you budget realistically, so you’re not stretching yourself too thin financially.
3. Budget for More Than Just the Purchase Price
When budgeting for your first home, it’s important to factor in more than just the sale price. Here are a few extra costs to keep in mind:
• Closing Costs: Typically 2-5% of the purchase price, covering things like lender fees, title insurance, and taxes.
• Home Inspections: You’ll want to inspect the home for any hidden issues, which can cost a few hundred dollars.
• Property Taxes & Insurance: These ongoing expenses vary by location but can add a significant amount to your monthly payment.
• Maintenance & Repairs: Unlike renting, you’re responsible for fixing things when they break. Setting aside a small emergency fund for unexpected repairs is a smart move.
4. Your Credit Score Matters (But It’s Not Everything)
Your credit score plays a big role in the mortgage process, affecting the interest rate you qualify for and how much you can borrow. While a higher score typically means better loan terms, don’t panic if your credit isn’t perfect. Many lenders offer options for buyers with less-than-stellar credit, especially first-time homebuyers.
If you’re unsure about your credit, start by checking your score for free online. You can also improve your score by paying down debt, making payments on time, and avoiding new credit inquiries in the months leading up to your purchase.
5. You Don’t Have to Navigate the Process Alone
Buying your first home can feel like a lot—but you don’t have to figure it out all by yourself. Working with a knowledgeable real estate agent (like me!) can make the process smoother, less stressful, and even fun.
An experienced agent will:
• Guide you through the process step-by-step.
• Help you find homes that fit your budget and needs.
• Negotiate on your behalf to get the best deal.
• Connect you with trusted professionals, like mortgage lenders, inspectors, and attorneys.
Having someone in your corner makes all the difference when it comes to understanding the process and feeling confident in your decisions.
Final Thoughts: You’ve Got This!
Buying your first home is a big step, but with the right preparation and guidance, it can be one of the most rewarding experiences of your life. Remember—you don’t need a huge down payment, getting pre-approved is key, and budgeting for extra expenses will save you from surprises. Most importantly, you don’t have to go through it alone.
If you’re thinking about buying your first home, I’d love to help you navigate the process. Whether you have questions about financing, neighborhoods, or the home-buying process in general, I’m here to make it easy and enjoyable. Reach out anytime—I’d love to chat!
