Your Guide to Buying Your First Home

Know What You Can Afford

Before you start touring homes, know your real budget. As a rule of thumb, your monthly housing costs — mortgage, taxes, insurance, and HOA — should stay under about 28% of your gross monthly income. But there's more than the monthly payment to plan for:

• Down payment: typically 3-20% of the purchase price depending on your loan type
• Closing costs: usually another 2-5% of the purchase price
• Moving and immediate fixes: set aside 1-2% for the unexpected
• Emergency fund: keep 3-6 months of expenses in reserve for after you close

Getting Pre-Approved

A pre-approval letter is a lender's written estimate of how much they're willing to lend you. It's not the same as being pre-qualified — pre-approval is stronger and shows sellers you're serious. In competitive markets, your offer won't be taken seriously without one.

Expect lenders to ask for:

• Two years of tax returns and W-2s
• Recent pay stubs (last 30 days)
• Two months of bank statements
• Proof of any other assets or income
• Your credit will be pulled — aim for a score of 620+ (higher is better)

We work with lenders we trust and are happy to make introductions.

The Home Search

Once you're pre-approved, we'll sit down and map out what you're looking for. The trick is separating wants from needs:

• Needs: bedrooms, location, commute, school district, budget
• Wants: updated kitchen, garage, yard, pool, style

We'll set up custom alerts so you're the first to know when a matching listing hits the market, and we'll schedule tours around your life — evenings, weekends, whatever works.

Making an Offer

When you find the one, we move fast. We'll pull recent comparable sales, recommend an offer amount, and structure the terms — price, contingencies, closing date, earnest money, and any concessions.

Most purchase contracts include an inspection contingency (gives you a window to have the home professionally inspected and back out or renegotiate if needed), an appraisal contingency (protects you if the home appraises lower than your offer), and a financing contingency(protects you if your loan falls through). We'll walk you through each one and recommend what to keep and what to waive based on the market.

Common First-Time Buyer Mistakes

• Skipping pre-approval.You'll waste time on homes you can't buy.
• Stretching to the top of your budget. Leave room for life — new furniture, unexpected repairs, and the freedom to say yes to dinner out.
• Opening new credit lines during escrow.Don't buy a car or a new couch on credit until after you close. Lenders re-check before funding.
• Waiving inspection to win a bidding war. Sometimes necessary, but understand the risk.
• Falling for the first home you see. It might be the one — but tour a few more to calibrate.