First-Time Home Buyer Guide: Everything You Need to Know Before You Buy

by Jacob Fishman

Buying your first home is a major life event. It’s exciting—but also full of unfamiliar terms, paperwork, and decisions that can feel overwhelming. As a first-time home buyer, you deserve clear guidance, smart strategies, and a team that puts your best interest first.

In this blog, I’ll walk you through each step of the process, breaking down what you need to do—and what to avoid—to make the smartest decision for your future.

✅ 1. Understand Your Budget

Before you start scrolling through Zillow or booking showings, you need to know how much house you can actually afford. Start with a full breakdown of your monthly income, current debts, and how much you've saved for a down payment.

Use online mortgage calculators to get an estimate, but remember:
You’ll need to factor in more than just the listing price. Consider:

Property taxes (can vary widely by location)
Homeowners insurance
Maintenance and utilities
HOA dues (if you're looking at a condo or townhome)
Closing costs (usually 2–5% of the purchase price)

Pro Tip: Lenders typically want your housing costs to be no more than 28–30% of your gross income.

✅ 2. Check and Improve Your Credit Score

Your credit score significantly impacts your mortgage rate—and over time, your total cost of the loan. Most lenders prefer a score of 620 or above, with the best rates going to those above 740.

Ways to boost your score:

Pay off credit card balances
Dispute errors on your credit report
Avoid new credit inquiries during the buying process

✅ 3. Get Pre-Approved for a Mortgage

This step tells you how much a bank is willing to lend you, giving you a price range to work within—and showing sellers you're a serious buyer.

Pre-approval vs. pre-qualification:

Pre-qualification = rough estimate based on self-reported info
Pre-approval = verified income, credit, and assets

Getting pre-approved early can help you act fast when you find the right home, especially in a competitive market.

✅ 4. Understand Your Loan Options

First-time buyers may qualify for special loan programs with lower down payments or flexible credit requirements.
Some common options:

FHA Loans: As little as 3.5% down, good for lower credit scores
VA Loans: No down payment for veterans and active-duty military
USDA Loans: No down payment for homes in rural areas
Conventional Loans: 3%–20% down, best for strong credit borrowers

Ask your lender or agent about local/state-level first-time buyer programs that offer down payment assistance.

✅ 5. Find a Real Estate Agent Who Specializes in First-Time Buyers

An experienced agent is your best asset in this process. They’ll help you:

Understand contracts and timelines
Negotiate the best deal
Recommend trusted inspectors, lenders, and more
Calm your nerves when the process feels overwhelming

✅ 6. Always Get a Home Inspection

Even if the home looks perfect, a professional inspection can uncover costly issues like foundation damage, plumbing leaks, or electrical problems. The inspection gives you leverage to negotiate repairs—or walk away if needed.

✅ 7. Be Ready to Move Fast

In many areas, homes sell quickly. Once you’re pre-approved and know what you're looking for, you’ll be in a better position to act when the right opportunity arises.

👋 Work With a Real Estate Agent Who Understands First-Time Buyers

I’ve helped many first-time buyers find their dream home with confidence and clarity. As an agent and investor, I’m here to simplify the process, protect your investment, and help you make informed decisions every step of the way.

📩 Ready to get started? Contact me today and let’s find your first home together.