First-Time Home Buyers, Listen Up: Here’s the Cheat Code to Buying Your Dream Home!
So, you’re ready to buy your first home? Let me just say—congratulations! This is your golden ticket to adulting at the next level (like unlocking a new stage in your favorite game).
But before you dive in headfirst, let’s decode the home-buying process in a way that doesn’t sound like your tax accountant explaining the latest regulations. And guess what? If you’re more of a "listen while you drive" kind of person, the audio version of this guide will be available soon—perfect for your podcast-style fix.
Ready? Let’s roll.
Prefer listening to all this wisdom while sipping coffee or hitting the gym? Stay tuned for the audio version of this post—it’ll be like having your own personal home-buying coach in your pocket.
1. "How much do I need to save? Is my piggy bank doomed?"
Think of it this way: you’ll need about 6.5% to 7% of the home’s purchase price. That covers your down payment (as little as 3.5% for an FHA loan) and those sneaky closing costs (~3%). Sure, there are zero-down options and programs to help out, but having a financial cushion makes life way easier. Nobody likes surprises—especially expensive ones.
2. "What’s the deal with credit scores and income checks?"
Lenders are like your nosy aunt at Thanksgiving—they want to know everything. They’ll peek into your last two years of work history and check your credit score. Aim for 620+ (740 if you want brag-worthy loan rates). Have a co-borrower? Their credit gets judged too, so make sure everyone’s financial ducks are in a row.
3. "Do I really need a realtor? Sounds expensive."
Yes, you need one. A buyer’s agent is like your real estate fairy godparent. They fight for your best interests, find you dreamy homes, and negotiate like a pro. Bonus? You usually don’t pay them! The seller handles their commission. (But if it’s a for-sale-by-owner situation, there could be some cost-sharing. Chat with your agent first.)
4. "What’s pre-approval, and why is everyone hyping it?"
Getting pre-approved is like getting your VIP pass—it shows sellers you mean business. You’ll share docs like pay stubs and tax returns, and the lender gives you a shiny pre-approval letter. Translation: You’re a serious buyer with money (well, technically, access to money). This could make the difference between snagging your dream home and losing out to someone else.
5. "House hunting: Pinterest goals or budget reality?"
Step one: Make a “needs vs. wants” list. Do you need that walk-in closet, or is it just a “nice-to-have”? Stick to your priorities to avoid falling in love with homes that don’t check the right boxes. Treat it like dating—don’t get distracted by a pretty face (or in this case, a gourmet kitchen you don’t actually need).
6. "What’s this due diligence thing? It sounds intense."
During this 10-day window, you’ll do all the behind-the-scenes detective work: home inspections, insurance quotes, and maybe even mold or radon testing if needed. A great home inspector is your BFF here—they’ll uncover what’s hiding behind those freshly painted walls.
7. "Can I ask the seller to fix stuff?"
If the inspection report reveals problems, you can ask the seller to make repairs (unless you’re buying the home “as-is”). Stick to the big stuff—like safety or major functional issues—and be ready to negotiate. Sellers might fix things, offer cash credits, or straight-up say no. Keep the conversation going until everyone’s happy.
8. "Why is the lender obsessed with appraisals?"
An appraisal ensures the home is worth what you’re paying for it. If the appraisal comes back lower than the agreed price, renegotiation time! Most sellers will play ball to close the deal, but be ready for potential hiccups—like repair requests (FHA and VA loans are especially picky).
There you have it—the cheat sheet to buying your first home, minus the tech jargon. Share this post with anyone who needs it (or who keeps asking if you’re still renting). Happy house hunting!
Best,
Author