A First-Time Homebuyer’s Guide: Everything You Need to Know

Step 1: Assess Your Finances

Before you start searching for a home, it’s important to understand your financial situation. Here’s how to prepare:

Find a Lender – If you’re thinking about buying a home, you might be tempted to start browsing listings or attending open houses right away. But before you get too deep into your search, there’s one crucial step you shouldn’t skip-contacting a lender. A lender will assess your financial situation and give you a pre-approval letter that outlines the loan amount you qualify for. A mortgage pre-approval shows sellers that you’re a serious buyer and can afford the home you’re interested in. 

I work with many trusted lenders in the Asheville area and I’m happy to provide recommendations. 

Set a Budget – Lenders typically recommend that your monthly mortgage payment doesn’t exceed 28-30% of your gross monthly income. 

Save for a Down Payment – Depending on the loan type, you may need anywhere from 3% to 20% of the home’s purchase price as a down payment. 

Consider Closing Costs – Closing costs typically range from 2% to 5% of the home price, covering fees such as inspections, loan origination, and attorneys fees.

Step 2: Make a List of Must-Haves

Before you start home shopping, define what you’re looking for. 

• Location – Proximity to work, schools, shopping, outdoor activities, and amenities
• Home Size – Number of bedrooms/bathrooms, square footage
• Features – Open floor plan, garage, backyard, updated kitchen, etc.
• Neighborhood – Walkability, HOA rules, community vibe

Being clear on your priorities will help us narrow your search so that you don’t feel overwhelmed by too many options.

Step 3: Start Your Home Search

Once you’re pre-approved and have your wish list ready, it’s time to start looking at homes!

• Work with an experienced real estate agent who knows the local market (like me!)
• Attend open houses and schedule private showings
• Compare homes based on price, location, and overall condition

Remember, no home is perfect, so be open to slight compromises while keeping your priorities in mind. The 80/20 rule can help you determine if a home is a good match. If at least 80% of your list consists of pros, the house is likely an ideal fit for you.

Step 4: Make an Offer and Negotiate

Once you find the right home, it’s time to make an offer. Your real estate agent will help you determine a competitive price based on market conditions.

• Consider including contingencies like a home inspection, financing, or appraisal
• Be prepared to negotiate with the seller, especially in a competitive market
• If your offer is accepted, congratulations—you’re one step closer to homeownership!

Step 5: Home Inspection & Appraisal

A home inspection helps identify any potential issues before you finalize the purchase. The appraisal, ordered by your lender, ensures the home is worth the agreed-upon price.

If major issues arise during the inspection, you may negotiate repairs or a price reduction with the seller. Finding an inspector that is thorough is extremely important. I’ve worked with many through the years and have a list of trusted contacts I can share. 

Step 6: Close on Your Home & Move In!

Once all contingencies are met and financing is secured, you’ll attend the closing to sign final documents. You will know everything you need to bring to the closing table and will have all a final closing statement to approve prior to attending. You will want to be sure to set up all utilities prior to closing. 

After closing:

• Receive the keys to your new home
• Change your address with financial and credit card companies
• Move in and celebrate this huge milestone!

Working with first-time home buyers is one of the most rewarding aspects of my job! There’s something truly special about helping first-time homebuyers find their very first home. Contact me today to start the process!