What I Wish I Knew Before Buying My First Home

Buying a home is one of the biggest financial decisions you’ll ever make. While it’s an exciting milestone, it can also be overwhelming, especially for first-time buyers. Many people go into the homebuying process with high expectations but quickly realize there’s a lot they didn’t know. If I could go back and give myself advice before buying my first home, here are the key things I wish I had known.

1. The True Cost of Homeownership

Many first-time buyers focus on the down payment, but that’s just one piece of the financial puzzle. Owning a home comes with many hidden costs, including:

✔ Closing Costs – These can range from 2% to 5% of the home’s purchase price and cover lender fees, title insurance, and more.✔ Property Taxes – Taxes vary by location and can increase over time, affecting your monthly payment.✔ Homeowners Insurance – Your mortgage lender will require insurance, and costs depend on location and coverage.✔ Maintenance and Repairs – Unlike renting, you’re responsible for fixing things like a leaky roof, HVAC issues, or plumbing problems.✔ HOA Fees – If you buy in a neighborhood with a homeowners association, expect additional monthly or yearly fees.

Before buying, budget for all these expenses to avoid financial surprises.

2. You Don’t Have to Put 20% Down

A common misconception is that you need a 20% down payment to buy a home. While putting down more can lower your monthly payment and eliminate private mortgage insurance (PMI), it’s not always necessary. Many loan programs allow for lower down payments:

✔ FHA Loans – As little as 3.5% down for buyers with good credit.✔ Conventional Loans – Some allow as little as 3% down with PMI.✔ VA Loans – No down payment required for eligible military members and veterans.✔ USDA Loans – No down payment required for homes in rural or suburban areas.

If saving 20% is delaying your homeownership goals, explore your options with a lender.

3. Get Pre-Approved Before House Hunting

Looking at homes before knowing how much you can afford is a mistake. A mortgage pre-approval gives you a clear picture of your budget, strengthens your offer, and helps you compete in a competitive market.

When getting pre-approved:

✔ Check your credit score – Higher scores get better loan terms.✔ Compare mortgage lenders – Different lenders offer different interest rates and fees.✔ Understand your debt-to-income ratio – Lenders use this to determine affordability.

A pre-approval makes you a serious buyer and speeds up the process when you find the right home.

4. Location Matters More Than the Home Itself

You can change almost anything about a house, but you can’t change its location. I wish I had focused more on the neighborhood rather than just the home’s features. Consider:

✔ Commute times – Is the home close to work, schools, or public transportation?✔ School districts – Even if you don’t have kids, good schools increase property values.✔ Future development – Are there plans for new businesses, highways, or zoning changes?✔ Walkability and amenities – Are parks, shops, and restaurants nearby?

A great location can make or break your long-term satisfaction with your home.

5. The Home Inspection Is Critical

Never skip a home inspection! Even if the house looks perfect, hidden problems can cost thousands in repairs. A professional inspection can uncover:

✔ Foundation cracks or structural issues✔ Roof damage or leaks✔ Plumbing or electrical problems✔ HVAC or water heater concerns✔ Mold, pests, or water damage

If major issues arise, you can negotiate repairs with the seller or reconsider your purchase.

6. Your First Home May Not Be Your Forever Home

Many first-time buyers think they need to find their "dream home." In reality, your first home is often a stepping stone. It’s okay if it’s not perfect. Focus on:

✔ Buying in an area with strong resale potential✔ Choosing a home you can afford, even if interest rates rise✔ Being realistic about your long-term needs

Your first home is an investment that can help you build equity for your next home.

7. Don’t Let Emotions Take Over

Falling in love with a home can cloud your judgment. Be mindful of:

✔ Bidding Wars – Overpaying due to competition can lead to buyer’s remorse.✔ Ignoring Red Flags – If something feels off, trust your instincts.✔ Rushing the Process – Take your time to compare options and avoid pressure from sellers or agents.

Stay focused on your priorities and budget to make a smart decision.

Buying your first home is an exciting journey, but it comes with lessons you often learn the hard way. By understanding the true costs, exploring loan options, and focusing on location and resale potential, you can make a more informed decision.

If you’re planning to buy soon, do your research, work with a trusted real estate agent, and remember—it’s okay if your first home isn’t perfect. It’s just the beginning of your homeownership journey!