Tips for First-Time Home Buyers

Written By Gary Buffaloe
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There are few things as exciting as shopping for your first home. From the moment you decide to begin the process to the moment you first have keys in hand, each step moves you closer to one of the most significant milestones of your life. The experience is exhilarating and scary, especially as you are first getting started. I have worked with many first-time homebuyers to make it as smooth as possible. Here are seven tips for navigating the process of buying your first house.

Seven Tips for First Time Home Buyers

1) Do Not Stretch Your Budget Too Thin

Buying a home is one of the most significant purchases your family can make. Real estate is a great investment as long as you can afford it. Some people get in trouble by jumping in too quickly or buying more home than they can comfortably afford. Factors you should consider when developing your housing budget include:

  • Your mortgage should be no more than 28% of your income. If your gross income is $8,000/month, your mortgage should be $2,240 or less per month.

  • You should have enough money set aside to make repairs and perform routine maintenance.

  • You should be able to continue paying your mortgage even if you run into financially challenging times.

  • You are going to be paying for your home for fifteen or thirty years. You need to make sure you are ready to take on that challenge.

While paying rent feels like throwing money away, be careful not to rush into buying a house before you are ready.

2) Save for a Solid Down Payment

Being able to put down a solid down payment will help you in the short term and in the long run. In the short term, having cash on hand makes you appealing to banks, and it gives you negotiation power. In the long run, you may be paying less per month with lower interest rates, providing you more flexibility to save for your next home.

If you can save enough to put down 20% upfront, you can avoid PMI (Private Mortgage Insurance), saving yourself thousands of dollars each year. However, there are also some low down payment mortgage options that may be preferable to perpetually renting.

3) Get Pre-Qualified for a Mortgage

It may be impossible to even see a house without a preapproval letter from a lender. Even if you do not ultimately use the lender who issues the letter, you need to obtain it before you fall in love with a house you see online.

Do not, however, assume you can spend every dime for which you are pre-approved. Even if the lender says you could obtain a mortgage at a certain amount, you still need to look for homes that are within your budget.

4) Explore Your Loan Options

Do not settle with the first mortgage option presented to you. Mortgage products such as USDA, FHA, and VA may help you save money and find the house you need. Otherwise, shop around with different banks and lenders to find the loan that gives you the most bang for your buck.

5) Determine What You Need/Want in a House

You want to make sure you get the house you need while avoiding buyer’s remorse. Make two lists: what we need and what we want.

Needs (non-negotiable):

  • Minimum number of bedrooms

  • Minimum number of bathrooms

  • Size of kitchen

  • Office space if you are working remotely

  • Yard size

  • Municipal and HOA regulations for fencing, buildings, and additions

  • Move-in ready or fixer-upper

  • Finished or unfinished basement

  • In-law suite

  • Etc.

Wants (negotiable):

  • Mountain view or nearby stream

  • Garden-tubs or showers

  • In-ground pool

  • Acreage

  • Sheds, outbuildings, and garages

  • Fences

  • Tree cover or open lawn

  • Bonus rooms

  • Etc.

Be careful not to be too narrow while you are searching, but with a purchase this significant, you do not want to find yourself with buyer’s remorse.

6) Work With a Trusted Realtor

You are unlikely to find the property you want without help. Whether you are new to the area or lived there all your life, you need to work with a trusted local realtor. In the foothills, piedmont, and High Country areas around Wilkes County, Matt Davis has the qualifications and experience to help you find an awesome first house. Matt will help you develop your needs and wants lists and match you with the home of your dreams.

7) Don’t Skip the Steps Between Making an Offer and Closing

It can be tempting to try to find ways around some closing steps, but each one is important to making sure you end up with the house you really want. For example, skipping the inspection may cause you to miss important details until it is too late. Make sure you take every step of the process seriously. It is daunting, but necessary for getting the keys to your dream house.

8) Enjoy The Process of Shopping for Your First Home

Don’t forget to enjoy the process, from start to finish. This is an exciting time for you and your family. Matt Davis is a real estate broker in northwestern North Carolina. He serves North Wilkesboro, Wilkesboro, Boone, Blowing Rock, West Jefferson, Yadkinville, Taylorsville, and every community in the foothills, piedmont, and High Country. Contact Matt Davis to start the process of buying your first or tenth property.

Gary Buffaloe