Getting pre-approved is a great first step—but it’s only the beginning. Here’s what else first-time buyers should understand before they start house hunting:
1. Know your true budget.
Pre-approval tells you what a lender might loan you, but not what you’ll actually feel comfortable spending—factor in things like monthly expenses, lifestyle, and future goals. Start tracking your actual spending monthly to see how much you spend, including the impulse purchases that you may not usually notice; they can add up.
2. Understand the full cost of buying.
Beyond the down payment, there are additional costs, including closing costs, inspections, home insurance, taxes, homeowners association fees, and moving expenses. Ensure you’re budgeting for the entire picture.
3. Be clear on your must-haves vs. nice-to-haves.
It’s easy to get swept up in shiny countertops and staged homes. Make a list of your true priorities—like location, layout, commute, or yard size—and stick to it. Be sure to think about your lifestyle...do you need a quiet work-from-home space? Planning to grow your family in the next 5 years? If you travel frequently, a lock-and-go type of condo may be the best option. What type of home fits how you live?
4. Be ready to move quickly.
In competitive markets, homes can go fast. Having a trusted agent, your paperwork in order, and clarity on your goals will help you make confident decisions.
5. Choose the right team.
You’ll want a great agent and a responsive lender who understands first-time buyers, can explain the process clearly, and advocates for your best interest.
