Buying Your First Home? Let’s Start With the Basics

Kelly Reider

Oct 2

2 min read

Updated: Oct 9

Thinking about buying your first home can be exciting—and a little overwhelming. How much do you need saved? Who should you talk to first? How do you know whether you’re ready?

You don’t need all the answers today. Here are a few things to know as you get started.

Find a monthly payment you feel comfortable with

Start with your everyday budget. Your home payment should leave room for groceries, transportation, savings, and enjoying life.

Remember to plan for taxes, insurance, utilities, and home repairs, too. The amount you’re approved to borrow may be more than you want to spend.

You may not need 20% down

You don’t always need a 20% down payment to buy a home. Some loan options allow less. A lender can explain what you may qualify for and how your down payment affects your monthly costs.

You can also ask about homebuyer assistance programs and what their requirements are. Learn more about down payments.

Save for more than the down payment

There are other expenses to plan for, including closing costs, inspections, moving, and those first trips to the hardware store.

Ask your lender to explain how much cash you may need and when each expense is due. Keep some savings available for surprises after you move in.

Talk to a lender before you fall in love with a house

An early conversation can help you understand your options and choose a realistic price range. Even if buying is months away, you can find out what to work on now.

A preapproval helps guide your search, but it isn’t a guarantee of final loan approval. Here’s what preapproval means.

Think about everyday life in the home

The kitchen may look great in pictures, but would the home work for you on a regular Tuesday?

Think about your commute, storage, yard work, and the space you actually need. Make a short list of must-haves and nice-to-haves before you start touring.