Buying your first home is one of the most exciting milestones of your life, but I know it comes with a long list of questions. My philosophy is that education is the antidote to stress. If you’re wondering where to start, you aren’t alone!
Here are the most common questions I hear from first-time buyers, answered simply.
1. What is the very first step?
Before we look at a single house, you need to speak with a lender to get Pre-Approved. This is different from being “pre-qualified.” A pre-approval means a lender has verified your income and credit, giving us a “clear budget” so we only tour homes you can actually afford.
2. Do I really need a 20% down payment?
No! This is one of the biggest myths in real estate. While 20% is great because it eliminates private mortgage insurance (PMI), many first-time buyer programs allow for down payments as low as 3% or 3.5%. If you are a veteran, you may even qualify for a 0% down VA loan.
3. How much do I have to pay my Real Estate Agent?
As a buyer, you typically pay nothing out of pocket for my services. In a traditional real estate transaction, the seller pays a commission that is split between their agent and your agent. You get professional representation, negotiation expertise, and legal protection at no direct cost to you.
4. How long does the process take?
Once we find “the one” and your offer is accepted, the typical escrow period is 30 to 45 days. However, the time spent searching for that home varies. Some of my clients find their home in a weekend; for others, it takes a few months to find the perfect fit.
5. What is a “contingency”?
Think of a contingency as a “safety exit.” It is a condition in your contract that must be met for the deal to move forward. Common contingencies include the Home Inspection (the house must be in good shape) and the Appraisal (the house must be worth what you’re paying). If these aren’t met, you can usually walk away with your deposit intact.
6. Should I buy a “fixer-upper” or “move-in ready”?
This depends on your “sweat equity” appetite. A fixer-upper can be a great way to build wealth quickly, but it requires liquid cash for renovations. A move-in ready home is more expensive upfront, but it allows you to fold the cost of the home’s condition into your monthly mortgage.
7. What are “closing costs”?
Beyond your down payment, you’ll need to budget for closing costs—usually 2% to 3% of the purchase price. These cover things like loan processing fees, title insurance, and taxes. We will see an itemized list of these long before you sign the final papers.
The Bottom Line: You don’t need to have all the answers—you just need the right partner. My job is to handle the complexities so you can focus on finding a place to call home.
Do you have a question that isn’t on this list? Send me a DM or an email. No question is too small when it comes to your first home!
