Thinking About Buying Your First Home? Read This First
I remember buying my first house. It was so exciting. I got pretty obsessed with looking. I would drive all over town exhausting my gas tank, imaging myself and my future family in each place that was for sale. Everywhere I went that had freebie magazine racks I looked to see if they had a homes for sale publication. All that excitement was tampered with a bit of overwhelm and worry, too. Would I make the right choice? How big of a deal was the choice of neighborhood? Would I really be able to afford a mortgage payment? It turned out great! I got in touch with a very knowledgeable realtor and she guided me through the whole process seamlessly and even connected me with a wonderful financing source.
If you’re in that boat now, you’ve got good news? With good realtor guidance and a solid plan, buying your first home can be just as smooth, fun, and gratifying.
Here are some key things every first-time homebuyer should know before starting the journey.
Work With a Realtor You Trust
Working with a licensed realtor is a great first step in having a smooth home buying experience. A Realtor does way more than just show houses. They’re your advocate, guide, and negotiator throughout the process. A knowledgeable realtor helps you:
Schedule and attend home showings
Understand local market conditions
Identify red flags or potential issues
Craft competitive offers
Navigate negotiations and contracts
Give you tips on selecting lenders, inspectors and other professionals you may need to work with
When a realtor pulls from years of industry experience and knowledge of the local area it can save you time, minimize your stress, and allow you to keep more money in your pocket at the end of the process.
Understand Written Buyer Agreements
Before touring homes, you’ll likely be asked to sign a written buyer agreement with any realtor you reach out to. That’s because they’re required by law to ask for it. This document outlines the services your Realtor will provide, how long you’ll work together, and how compensation is handled. Once you’ve signed the agreement, you will be working with this realtor for the duration of the agreed upon timeline.
While it may sound intimidating, buyer agreements are designed to create transparency and protect both parties. They ensure everyone is on the same page before you start house hunting with no surprises or confusion. A good realtor will be open to you asking any questions you have right up front, even if it’s a question that feels uncomfortable to ask.
Explore Financing Options Early
Many first-time buyers assume there’s only one way to finance a home, but there are actually several options available. Depending on your financial situation, you may qualify for programs such as:
Conventional loans
FHA loans
VA loans (for eligible veterans and service members)
USDA loans (for qualifying rural areas)
Down payment assistance programs and grants
If you don’t yet know from what institution you’ll be getting lending, ask your realtor for suggestions. They’ll know who will give you the most options and be most supportive to your needs. Getting pre-approved early helps you understand your budget, strengthens your offer, and gives you confidence as you shop. When you know your budget limit, you’ll be more easily able to select the properties to look at.
Ask About Seller Concessions
First-time buyers are often surprised to learn that not all upfront costs have to come out of their pocket. In some situations, buyers can negotiate seller concessions, which may cover things like closing costs, fees, or even agent compensation. The National Association of Realtors gives the following example:
“For example, suppose a buyer is interested in purchasing a home with a price tag of $300,000 and during negotiations. If the seller agrees to provide concessions of 3%, the seller then contributes $9,000 (3% of $300,000) toward the buyer’s closing costs and other relevant expenses. This effectively lessens the financial burden on the buyer and facilitates the purchase. ”
Take Advantage of Education & Counseling
HUD-certified homebuyer education programs are an excellent resource, especially for first-time buyers. These programs can help you:
Create and manage a realistic budget
Understand credit and financing
Prepare for long-term homeownership responsibilities
In some cases, completing a certified course can also make you eligible for special loan programs or financial assistance.
Buying your first home doesn’t have to feel overwhelming. With the right professionals, clear expectations, and a little education, the process can leave you feeling excited and confident. If you’re thinking about buying your first home, McMichael Realty is a great place to start. Get in touch with Scott or Kristina to get the process started.
By Amy Winder
