Tips for First Time Home Buyers

Buying your first home can be confusing and overwhelming, but it doesn’t need to be. Educating yourself about the real estate market and staying informed on the latest trends and tips for buying a home can make the process smooth and seamless.

Before you embark on your home search, remember that a little research can go a long way toward getting you in your new front door — and with minimal stress.

When you’re considering buying your first home, there are so many things you need to consider: mortgage rates, how to maximize tax benefits, hidden assessment fees and that’s before you even do a home inspection or deal with the hassle of moving. It always helps to hear personal stories from friends, families, and neighbors who have experience buying and selling homes.

We will guide you through the process of searching for a home, help you place an offer that will stand out from the competition and propel you towards a successful close on the perfect home. Even so, there is much to learn from the personal anecdotes of others who have walked in your shoes already. Here are some important pieces of advice from us and home buyers who have already navigated the search for the perfect home — and want to help you succeed, too.

Have Your Finances and Credit in Order

Before you start searching for a home, check your credit score. Make sure the facts are correct and fix any problems you discover. Be sure to determine your budget — and take into consideration hidden fees like special assessments and any home repairs or renovations you need to make once you move in. Even when you’re eager to move toward a sale, shop around to make sure you’re getting the best deals on your loan/mortgage rates.

Almost every first-time homebuyer funds their purchase with a mortgage, and getting a mortgage requires credit. The better your credit, the lower the interest rate on your loan, and that can result in thousands or tens of thousands of dollars in savings over a number of years. To achieve a good credit score, it’s important to establish and use credit accounts, but it’s equally important to properly manage those accounts.

Pay bills on time and maintain a low balance on credit cards or pay them off in full each month. You can check your credit score online through the main credit reporting agencies. And if you run into a problem, fix it as soon as possible.

Seek Approval

Before you start looking for a home, it is essential to get pre-approved for a mortgage, especially in today’s competitive marketplace where there are more buyers than homes for sale. This will let you know exactly how much you can afford and make you a more attractive buyer to sellers who may be entertaining other offers. The lender performing the pre-approval will review your credit report and look at other documentation, such as paystubs, bank and brokerage statements, and tax returns. A pre-approval is not a full loan commitment.

Seek Help from a Real Estate Agent

Find an agent you can trust to help you throughout the whole home buying process, from searching for a home in the neighborhood you desire to placing an offer that will stand out and even navigating a successful close. You don’t want to make an offer in haste before you’ve thoroughly researched the market’s availability, and your real estate broker will know the market better than anyone.

Some of the most common mistakes homebuyers make occur because there’s little awareness of the common pitfalls. We know what is necessary to prevent potential negative situations. Buyers who think they’ll save money by not using an agent usually wind up costing themselves money, and missing out on the home they want, because they don’t have someone to advise them and negotiate on their behalf. 

Identify Needs vs. Wants

Make a list of the features that are most important to you such as location, type of home, number of bedrooms and bathrooms, and amenities. Then separate them into must-haves and nice-to-haves. This will help you focus your search and make sure you’re looking at the right listings, especially if you’re sticking to a strict budget.

Save for those Unexpected Expenses

Don’t blow your budget on the house, because as soon as you move in, there’s a lot to furnish. More importantly, something expensive will always need to be repaired or replaced.

If you buy an older house with original windows, it’s smart to replace them with energy efficient ones, especially if the previous owner left a sock in one to block air leaks.

Watch Out for Hidden Fees

There are many costs associated with buying a home beyond the purchase price. You’ll need to budget for things like closing costs, property taxes, home insurance and, if you’re buying a condominium or townhome, assessments/HOA fees. You’ll also want to furnish that home and budget for maintenance and repairs. Be sure to factor these items in when determining how much you can afford.

Find a good real estate attorney who can break down all of the condo association history, budgets and meeting minutes for you. Knowing your monthly assessment amount is one thing, but you may need to be prepared for a special assessment or a big increase depending on what that information reveals about the state of the building’s structure and finances.

Get a Home Inspection

Faults in your home may not catch your attention at first glance. When deciding to not invest in a home inspection, you’re risking incurring extra expenses and discovering hidden defects in your house. Being educated about the current condition of your home is worth the low up-front fees and will lessen the likelihood of incurring pricy home repairs when you move in.

Be careful when examining homes that need to be fixed up. You might end up pouring more money and time into it in the long run than you think.

Look for “What’s Behind the Walls”

The important part is that the state of what you could see foreshadowed what you couldn’t. A ‘fixer upper’ means fixing the unsexy things you can’t see.

The real expense is in what you can’t see because that’s the stuff that requires expertise to fix, and you just can’t do yourself. And some things you just never know until you open up walls. 

If You Live in the City, Consider Walkability

Make sure you carefully research neighborhoods as well. Consider things like schools, nearby amenities, and access to transportation. It can be helpful to visit neighborhoods at different times of the day to get a better sense of the area. Don’t forget to consider what you’ll want in a location over time as your lifestyle evolves.

Slow It Down

Buying your first home is a big decision, and it’s important to take your time. Don’t feel pressured to make an offer on a home before you’re ready, and don’t hesitate to walk away if it doesn’t feel like the right fit.

Make Closing Time Easy

Once you’ve found a home and your offer has been accepted, you’ll need to navigate the closing process. This can typically involve significant paperwork and deadlines, but we’ve eliminated much of the hassle with Closing Milestones, our proprietary client-facing portal. The technology guides buyers (and sellers) through the critical steps from contract to close, helping you keep track of key tasks and dates for items like the home inspection, attorney approval and mortgage approval.