Buying your first home is an exciting milestone, but it can also feel overwhelming. From securing financing to choosing the right neighborhood, there are many steps involved in the home-buying process. To help you navigate this journey with confidence, we’ve compiled 10 must-know tips for first-time homebuyers.

Whether you're just starting your search or ready to make an offer, these insights will set you up for success.

1. Get Pre-Approved for a Mortgage

Before you start house hunting, it's essential to know how much home you can afford. Getting pre-approved for a mortgage will give you a clear budget and show sellers that you’re a serious buyer. Work with a lender to review your credit score, income, and financial history to determine your loan options.

2. Set a Realistic Budget

Many first-time buyers focus on the home price but forget to account for closing costs, property taxes, homeowners insurance, and maintenance expenses. Create a budget that includes all these costs so you don’t end up stretching your finances too thin.

3. Determine Your Must-Haves vs. Nice-to-Haves

Before you start touring homes, make a list of your must-have features (e.g., number of bedrooms, location, backyard) and things that would be nice but aren’t deal-breakers. This will help you focus your search and make more informed decisions.

4. Research the Neighborhood

Your dream home won’t feel so dreamy if it’s in a location that doesn’t meet your needs. Research the school district, crime rates, local amenities, commute times, and future developments before making a decision.

5. Work with a Trusted Real Estate Agent

A knowledgeable real estate agent can guide you through the home-buying process, negotiate on your behalf, and help you avoid costly mistakes. Choose an agent with experience in your desired area and who understands your needs.

6. Don't Skip the Home Inspection

A home may look perfect on the surface, but hidden issues like plumbing problems, foundation cracks, or roof damage can be costly to fix. Always schedule a home inspection before finalizing your purchase to avoid unexpected surprises.

7. Understand the Mortgage Process

Mortgages come in different types, including fixed-rate, adjustable-rate, FHA, VA, and conventional loans. Take the time to understand your options and choose the loan that best fits your financial situation.

8. Save for a Down Payment and Closing Costs

Many first-time buyers assume they need 20% down, but some loans allow you to put down as little as 3-5%. However, you’ll also need to budget for closing costs, which typically range from 2-5% of the home’s purchase price.

9. Be Prepared for a Competitive Market

In a hot real estate market, homes can sell quickly, sometimes above asking price. Be ready to act fast by having your finances in order, and consider writing a strong offer with a personalized letter to the seller to stand out.

10. Don’t Let Emotions Take Over

Falling in love with a house is easy, but stay practical. If a home is outside your budget or has major issues, be willing to walk away. There will always be other homes on the market!

Buying your first home is an exciting journey, but it requires careful planning and informed decision-making. By following these 10 must-know tips for first-time homebuyers, you’ll be better prepared to navigate the process, avoid pitfalls, and find the perfect home for your needs.

Are you ready to take the next step? Contact a trusted real estate professional today to get started!

Matt Witte strives to be the best realtor in North Andover MA.

Any questions about real estate, reach out to Matt Witte North Andover Realtor MA