Buying Your First Home? Read This Before You Make an Offer
Buying your first home is exciting, but there’s a lot to figure out before you start touring houses and imagining yourself living there.
Here’s where I would start.
1. Get Pre-Approved First
Pre approval is the first step. Before you start shopping homes and fall in love with a house, talk to a lender and get pre-approved.
It gives you a realistic idea of what you can afford and, when you’re ready to make an offer, it shows the seller that you’re serious.
I’d also suggest talking to your REALTOR® first. They can often recommend lenders they’ve worked with and may know lenders who offer competitive rates, reduced fees, or other discounts for buyers.
One thing I always remind buyers: the amount a lender approves you for and the amount you actually feel comfortable spending can be two different numbers.
2. Look Beyond the Down Payment
The down payment is only one part of the upfront cost.
You’ll also want to plan for closing costs, inspections, appraisal, prepaid taxes and insurance, moving expenses and the unexpected things that tend to come up after you move in.
I’d want to have some savings left over rather than putting every dollar into the purchase.
Mostly importantly you should be comfortable with what you want to spend
I always recommend keeping a buffer amount in your savings rather than putting every dollar into the purchase. Having that extra cushion can make those first few months of homeownership a lot more comfortable.
3. Don’t Skip the Inspection
A home can look perfect during a showing and still have issues you wouldn’t notice right away.
Depending on the property, things like the roof, HVAC, plumbing, electrical or sewer may need a closer look.
An inspection doesn’t mean you’ll find a reason not to buy. It gives you information so you can make a informed decision with your eyes open and you know beforehand what you are getting into
4. Keep Your Finances Steady
Once you’re under contract, you may be tempted to make some big purchases.
That new car or furniture can wait.
I would check with your lender before taking on new debt or making any major financial changes while your mortgage is being processed.
5. Spend Time in the Neighborhood
Don’t make your decision based only on the house.
And if schools are important to your family, spend some time researching those too.
I recommend driving around the neighborhood at different times of the day. Try the commute during your usual hours. Check out the grocery stores, parks, restaurants and other places you’ll actually use.
You’re not just buying a house—you’re choosing a neighborhood where you’ll spend a lot of your everyday life.
Remember, You’re Buying More Than a House
Your first home doesn’t have to be perfect.
It needs to work for your finances, your lifestyle and the life you’re building.
Take your time, ask questions and make sure you understand what you’re getting into before you make that offer.