A Beginner’s Guide: How to Buy Your First Home 🏡

 

Buying your first home is an exciting, yet sometimes overwhelming, experience. There’s a lot to think about—savings, credit scores, mortgages, neighborhoods—and it’s easy to feel lost in all the details. But don’t worry! In this blog, we’ll break down the entire home-buying process step by step in plain language, so you can confidently navigate the journey toward homeownership.

 

Step 1: Know How Much You Can Afford 

Before you even start looking at homes, it’s important to figure out what you can realistically afford. This includes understanding how much you can spend on a monthly mortgage payment, plus additional costs like property taxes, insurance, utilities, and maintenance.

Quick Tip: A good rule of thumb is that your monthly mortgage payment should be no more than 28–30% of your gross (before-tax) income. If you’re unsure, a mortgage calculator can help give you an estimate.

Step 2: Save for a Down Payment
To buy a home, you usually need to put down a percentage of the home’s price upfront, they call this the down payment. The more you can put down, the better—this can help lower your monthly payments and show lenders that you’re a responsible borrower. 

How much do you need?
The traditional down payment is 20% of the home’s price, but you don’t always have to put that much down. Many first-time homebuyer programs offer down payments as low as 3–5%.

Step 3: Check Your Credit Score
Your credit score is a key factor in getting approved for a mortgage and determining your interest rate (which affects how much you’ll pay over the life of the loan). Lenders use your credit score to assess how risky it is to lend to you.

Pro Tip: If your credit score isn’t where you’d like it to be, take steps to improve it before applying for a loan. Pay down debts, make on-time payments, and avoid opening new credit accounts in the months leading up to your home search. You can even reach out to a financial advisor, most don't charge you directly😜 

Step 4: Get Pre-Approved for a Mortgage
A mortgage pre-approval is a letter from a lender that tells you how much they’re willing to lend you based on your income, credit score, and debts. It’s different from pre-qualification, which is a general estimate. Pre-approval shows that you’re serious about buying and helps you know exactly how much home you can afford.

For the love of all that is holy, do not skip this step, imagine finding your dream home, envisioning your entire new life there and then finding out you only qualify for the shed in the back of it. Don't break your own heart.

Why get pre-approved?
It gives you a competitive edge in a hot housing market (or any market really) as sellers know you’re financially ready to make an offer. Plus, it can speed up the home-buying process once you find your dream home.

Gee, How do I get pre-approved?

Start by posting something really vague about home shopping on a local face book page, you'll have thousands of real estate agents and lenders in your inbox in no time! Don't actually do that, ask your real estate agent for a couple names, they have been in the playing field with these companies and generally have a good idea of who is going to get you the most accurate approval. 

 

Step 5: Start House Hunting
Now comes the fun part—finding your new home! Consider what’s most important to you: number of bedrooms, location, school districts, amenities, etc. Make a list of your “must-haves” and “nice-to-haves” to help guide your search, give that list to your real estate agent.

Quick Tip: Be realistic about what you can afford and what’s available in your desired area. You might need to adjust your expectations a bit, but with patience and flexibility, you’ll find a great home.

Step 6: Make an Offer
Once you’ve found a home you love, it’s time to make an offer. Your real estate agent will help you determine a fair offer based on the home’s price, market conditions, and comparable sales in the area. You may also negotiate things like closing costs or repairs.

Quick Tip: If you’re in a competitive market, be prepared to act quickly and possibly make a higher offer to stand out. Your agent can advise you on strategies to strengthen your offer.

Step 7: Get a Home Inspection
Before finalizing the deal, it’s smart to get a professional home inspection. This is an expert’s opinion on the home’s condition, including potential problems with the foundation, plumbing, electrical systems, and more.

Why is this important?
The inspection can uncover issues that might not be visible during your initial tour. If there are major problems, you can ask the seller to fix them or negotiate a lower price.

Step 8: Secure Your Mortgage
Once your offer is accepted and the inspection is complete, it’s time to secure your mortgage. You’ll meet with your lender to lock in your interest rate, finalize the loan details, and submit any required documents. The lender will also conduct an appraisal to confirm the home’s value.

Step 9: Closing Time
The final step in buying a home is the closing. This is where you sign all the paperwork, finalize your mortgage, and officially take ownership of the property. Be prepared to pay closing costs, which can include things like attorney fees, title insurance, and appraisal fees. Your agent and lender will guide you through this process.

Quick Tip: Review all documents carefully before signing. Ask questions if something doesn’t make sense, and make sure you understand all the terms of your mortgage.

Step 10: Move In and have an epic dance party!
After closing, the home is officially yours! Now comes the fun part—moving in, decorating, and making the space your own. Be sure to keep track of your mortgage payments and stay on top of home maintenance to protect your investment.

 
Final Thoughts
Buying your first home can be a long journey, but it’s also incredibly rewarding. By taking the process step by step, you can make informed decisions and feel confident about your purchase. Remember, there are plenty of resources and professionals—real estate agents, mortgage brokers, and inspectors—who are there to help guide you through the process.

Happy house hunting!