Buying your first home is a big milestone—but it doesn’t have to be overwhelming. These practical, expert-backed tips can help you stay grounded, confident, and on budget.
1. Know your monthly comfort zone—not just your loan limit
Getting pre-qualified helps you understand how much you could borrow, but it’s just as important to know what monthly payment feels sustainable. Start by asking: What am I paying in rent? Could I go a little higher and still live comfortably? Your lender can help translate that number into a home price that fits your life—not just the bank’s math.
2. Get pre-qualified early
Before you start browsing homes, talk to a lender. Pre-qualification gives you a clearer picture of your purchasing power, helps you narrow your search, and signals to sellers that you're serious. It can also reveal next steps if you’re not quite ready yet.
3. Look into down payment assistance programs
State and federal programs—especially for first-time buyers—can offer grants, forgivable loans, or deferred-payment assistance to help with your down payment or closing costs. Even if only one partner qualifies as a first-time buyer, you may still be eligible.
4. Work with an experienced local agent
Your real estate agent should be more than a tour guide. A great agent knows the local market, has strong negotiation skills, and can help you find hidden value in homes that others may overlook. Check their reviews, ask about their track record, and make sure they’re familiar with first-time buyer needs.
5. Don’t overlook homes that need cosmetic updates
Turnkey homes are tempting, but they often come with a premium price tag. A home that needs light updates—like paint or fixtures—could be a better value. Just be sure to budget for improvements and understand what’s cosmetic vs. structural.
6. Compare different loan options
Conventional loans, FHA loans, USDA loans—each has different requirements and benefits. A knowledgeable loan officer can help you compare rates, down payment needs, and long-term costs to choose what fits best.
7. Ask about seller concessions
Even in a competitive market, there may be room to negotiate. A seller might agree to cover closing costs, provide repair credits, or even pay off things like solar panels. Your agent can help you identify when and how to ask.
8. Know when to compromise
It’s rare to find a home that checks every box. Define your must-haves vs. nice-to-haves early. Is location more important than square footage? Is layout more valuable than finishes? Clear priorities make decisions easier when trade-offs come up.
9. Pay attention to lot size and potential
Features like a large backyard or space for an accessory dwelling unit (ADU) can offer long-term value, especially if you plan to grow your household, create a rental space, or build equity over time.
10. Consider “house hacking” to offset your mortgage
Buying a multi-unit property and renting out part of it—or even just a finished basement—can help cover your monthly payment. It’s not for everyone, but it can be a smart first step toward building wealth through real estate.
11. Watch for hidden or location-based costs
Before you fall in love with a home, check for costs that aren’t obvious. These could include flood insurance, HOA fees, property taxes, or local utility rates. A home’s price is just part of the picture.
12. Be open to new construction—but do your homework
New builds may come with incentives like builder-paid closing costs or upgraded finishes. But it’s important to research the builder’s track record, check warranties, and confirm all permits are properly closed before signing.
13. Don’t rule out older listings
Homes that have been sitting on the market might need a second look. Sometimes the issue is as simple as poor staging or photos. If you’re willing to see the potential, you may find a hidden gem at a better price.
14. Consider taking over a seller’s low-rate mortgage
In some cases, you may be able to assume a seller’s existing mortgage—especially VA, FHA, or USDA loans. If approved, this could lock you into a significantly lower interest rate than what’s currently available.
15. Buy when you’re ready—not when the market is “perfect”
Trying to time the market can keep you on the sidelines too long. If you’ve found a home that fits your budget and lifestyle, it may make sense to buy now and refinance later if rates drop. The key is staying within a payment that feels manageable—today and tomorrow.
Ready to take the first step toward homeownership?
Let’s talk. Our BankFirst Mortgage team is here to help you understand your options and build a plan that fits your goals.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 454063
www.nmlsconsumeraccess.org
900 Main Street
Columbus, MS, 39701
Phone: (662) 328-2248
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