First-Time Home Buyer's Guide

Your step-by-step guide to a stress-free buying experience

Buying a home for the first time? Follow these simple steps.

1. Choose a mortgage (and a mortgage partner) that fits.
What mortgage type you choose impacts how much home you can buy and whether you pay Private Mortgage Insurance (PMI). A mortgage specialist can help you understand your options.

2. Determine what you can afford.
As a rule, your mortgage should not exceed 28% of your gross monthly income or 36% of your total monthly debt. The best approach is to work with a mortgage specialist to determine how much you can afford.

3. Define your dream home.
Prefer a two-story or a ranch? Can you make do without a garage? It’s rare to find a house that has everything, so make a list of “must-haves” and “like-to-haves.”

4. Define your dream neighborhood.
How important is being near a good school? What about commute time? Do you mind a bustling neighborhood or do you prefer privacy? Again, it’s difficult to find everything, so prioritize.

5. Hire a real estate professional.
How do you find a good Realtor? Ask around. Also consider the reputation and resources of various real estate companies.

6. Know what’s important.
When you’re touring prospective homes, don’t get sidetracked by paint color, wallpaper, decor or furniture. Instead, focus on things that cannot be easily or inexpensively changed, like:

• The floorplan – make sure it’s what you want
• The roofline and condition of the roof
• Heating, AC and electrical systems
• Closets, cabinets and attic space
• The ceiling – look for dips, cracks and water stains
• The yard - does it slope away from the house?

7. Hire a Home Inspector.
No matter how much you love a house, don’t make an offer without paying for a professional inspection. A licensed home inspector is trained to look for the things you might miss, like faulty wiring or building code violations.

8. Make an Offer.
A good agent can help you understand conditions in your market and determine an appropriate dollar figure for your initial offer. In general, the seller expects to receive an offer less than the asking price. Such negotiations are a healthy part of the buying process.

9. Close the Deal!
Once your offer is accepted, it’s time to schedule a closing date. Here are a few things to consider:

• Give yourself time – don’t try to squeeze closing into a lunch break
• Expect to pay at least some closing costs and fees
• Bring a certified check for the amount you owe (your agent will help you determine the dollar figure)