8 Things First-Time Home Buyers Need to Know

Buying a home (especially your first one) can be overwhelming, so before you even begin the process of looking, you’ll want to get all your ducks in a row. Start by meeting with an expert financial advisor, like the ones at Northwestern Mutual. Your advisor will work closely with you to figure out realistic ways to save money so you can actually afford the home of your dreams. Spoiler: You can still buy your daily morning coffee.

The laws and processes are different everywhere, but in most states, real estate agent fees are paid by the seller, not the buyer. That means you can rely on the expertise of a pro without worrying about exorbitant costs when it comes time to pull the trigger.

We get it. It’s super tempting to blow your budget on that new couch from CB2. But you should probably wait until you’ve moved in before you start racking up brand-new debt. Here’s why: Lenders have the right to check your credit up to the day of closing. This means it’s best to steer clear of any big purchases that could ding your bottom line.

Sure, they’re an excellent starting point, but you’ll need to speak with an actual mortgage professional to have a clear understanding of what you can buy and what kind of rates you can expect. (A flush bank account, for instance, might get you a better rate; a poor credit history, however, could dock you points.) Make an appointment and talk it out with a reputable lender to find out where you really stand.

Remember, you can swap out the shag carpeting and orange walls for hardwood floors and calming blues. What you can’t change, however, is the location, the backyard or the floor plan (well, not without serious permits).

A smart seller heeds professional advice when listing their home. That’s why you should focus less on getting a “deal” and more on getting a grip on what you feel is fair market value. If the asking price is on par with what you expected, it’s A-OK to offer that.

Yes, the seller wants to know you can actually pay and that you can afford to make a decent down payment (the higher, the better). But other things may factor into their decision. For example, flexibility with the closing date could be more valuable than an offer that’s $5K higher than yours. It also doesn’t hurt to send a letter communicating how much you adore the house and then be super speedy signing all paperwork.

We know. You want the picket fence, the double-sink bathroom, the easy commute, the right school district and the breathtaking view that doesn’t look directly into your neighbor’s kitchen. But no home is going to check all of your boxes. Rank your must-haves and dream features, and then be prepared to compromise. The right house is the one that comes to you at the right time.