What I Wish I Knew Before Buying My First Home

What I Wish I Knew Before Buying My First Home

 

By Cindy Ulsrud | Porchlight Properties | Realty Executives Cooper Spransy

Buying your first home is a whirlwind of excitement and stress. You're trying to absorb a mountain of information—from reading listings to making offers—with almost no time to actually process what it all means.

When I bought my first place, I learned some crucial lessons, but there were so many things that flew by so fast I couldn't grasp their significance until later. While I was thrilled with the outcome, there's a lot I wish I knew going into the process.

If you’re a first-time home buyer, here are the essential insights I want to pass on.

 

1. The Perfect Home Doesn’t Exist

You’re constantly bombarded with terms like "dream home" and "ideal lifestyle," which leads you to search for a move-in-ready property that needs absolutely no improvements. I did the exact same thing! That was an unrealistic expectation.

• Every home will have flaws. There will always be things you don't like or wish were different.

• Don't be the person touring hundreds of homes and still not satisfied. Look past the minor obstacles and cosmetics and focus on your non-negotiable priorities.

• View "slightly less than ideal" as opportunity. It's a chance to add your own personal touches and build equity.

 

2. The Costs Go Far Beyond the Home Price

The sticker price on the house is just the starting point. When I was buying my first home, I hadn't fully grasped all the other expenses I'd be responsible for.

💸 Beyond the Down Payment

• Closing Costs: Expect to spend 2% to 5% of the home’s price on things like loan application fees, appraisal fees, title insurance, attorney fees, prepaid taxes, and homeowner’s insurance.

• Initial Setup/Repairs: Set aside an extra 50% on top of your down payment for small repairs, new hardware, updating systems, and initial furnishings—even things like extra towels for your new guest room add up!

• Annual Maintenance: Budget 1% to 2% of your home’s price annually for maintenance, utilities, insurance, and property taxes. Make sure you have enough savings to cover these for the first year.

 

💡 My Smart Budget Tip: Don't Max Out

A good rule of thumb is to aim for a house that is 20% to 30% under your maximum pre-approval amount. You'll need cash and borrowing room even after the move. Don't be "house poor"—leave room in your budget for the occasional dinner out or spa day after all that moving!

 

3. You Can Change a Kitchen, But Not a Neighborhood

When I shopped, I was dazzled by beautiful exteriors, great landscaping, and upgraded kitchens. But not all of those houses were close to amenities I wanted.

Location matters more than you think.

You can always update a kitchen, but you can’t pick your house up and move it. You'll be spending years—maybe decades—in that area. Prioritize the livability of the neighborhood, the commute, and the local amenities.

4. Never Skip the Home Inspection

In a competitive market, buyers feel pressured to waive the inspection to make their offer stronger. This is an extremely risky strategy.

• Houses can have issues that are invisible during a quick showing.

• Only a professional home inspection will uncover hidden problems, tell you which repairs are critical, and estimate those repair costs.

• This step is a must-have on every first-time buyer checklist. Period.

 

5. Pre-Approval Is Not the Same as Final Approval

Getting pre-approved is essential and gives you power as a buyer, but it's more of a preliminary indication than a guarantee of your final mortgage amount.

While awaiting final approval, keep your financial profile stable:

• DON'T make any big purchases (cars, furniture, etc.).

• DON'T open any new credit cards or change jobs.

• DO try to pay down existing credit.

The goal is to appear as financially stable as possible until the ink is dry.

 

6. Homeownership Isn’t Always the Better Choice

We're conditioned to aspire to homeownership, but it's not always the best move.

• It ties you down. You’re generally committed to one location for at least five years.

• It demands your time. You are now responsible for all maintenance, which eats into your free time and limits your budget for travel or entertainment.

For some lifestyles and markets, renting long-term can make more financial sense, giving you extra money for savings and freedom from unexpected home costs. Work out the exact figures with a trusted financial planner if you're not confident doing it yourself.

 

7. Your Real Estate Agent Does More Than You Think

If your knowledge of real estate agents comes from reality TV, you're in for a surprise. I was incredibly grateful for my agent’s dedication.

A good real estate agent is an invaluable source of support, guidance, and information. Ask about Buyer Agency! Your agent will:

• Advocate for you fiercely.

• Complete a mountain of paperwork on your behalf.

• Protect you from being taken advantage of.

 

8. Buying a Home is an Emotional Roller Coaster

The entire process—from shopping to closing—is an emotional journey. Every new homeowner I know experiences the full range: excitement, anticipation, doubt, anxiety, pride, joy, and even dread.

Rest assured, this is perfectly normal. That’s why it’s critical to leave room in your budget for relaxing activities and time with friends—you’ll need it!

 

9. Don’t Expect to Get Everything Right

I put a ton of pressure on myself to be the "perfect homeowner." Don't make this mistake. You will have missteps, and there will be things you wish you had done differently. Buying my first home was a long learning journey, and it will be for you, too.

Congratulate yourself on becoming a homeowner and give yourself plenty of grace. Your nerves will calm down once you see that you can manage the challenges, and you’ll soon be enjoying the immense emotional benefits of owning your own home.